Why Exela Technologies Shares Are Getting Hammered

Exela Technologies XELA shares are trading lower by 16.33% to $1.23 Wednesday morning after the company reported second-quarter sales results were down year over year.

What Happened?

Operating loss for Exela in second-quarter 2022 was $20.9 million, compared with operating income of $25.4 million in Q2 2021. The year-over-year increase in operating loss was primarily attributable to lower revenue and higher SG&A (Selling, General, and Administrative Expenses) spend.

Exela also experiened a net loss for second-quarter 2022 of $79.2 million, compared with a net loss of $19.4 million in second-quarter 2021.

What Else?

"We started the implementation of the next step of our Capital Deployment Strategy in Q2. Our capital structure dislocation represents an opportunity to deploy capital from the sale of assets and equity capital markets to purchase debt and invest for growth. Our business is prepared for tomorrow with tenured management and many additional new leaders with fresh ideas, who together are working on improving operating results while combating headwinds from the strong dollar, tight job markets, inflation and a network outage," said Par Chadha, Executive Chairman of Exela.

"We are executing well against our growth initiatives and capital redeployment strategy that enable us to better serve our customers and enhance shareholder value."

According to data from Benzinga Pro, Exela Technologies has a 52-week high of $64.59 and a 52-week low of $1.18.