FOR IMMEDIATE RELEASE

Ouster, Inc. (OUST) Stock Dips While Market Gains: Key Facts

NEW YORK – Ouster, Inc. (NASDAQ: OUST) experienced a significant downturn in Tuesday's trading session, starkly contrasting with modest gains in the broader technology market. The lidar technology company's shares closed at $24.84, marking a substantial 8.81% decline from the previous day. This move underscores a period of heightened investor scrutiny as the company approaches its next earnings announcement.

The sharp daily drop occurred amidst a mixed performance for the major U.S. indices. While the S&P 500 posted a marginal gain of 0.03% and the tech-heavy Nasdaq Composite rose 0.28%, the Dow Jones Industrial Average fell by 0.58%. Ouster's pronounced decline suggests company-specific factors are weighing more heavily on investor sentiment than general market currents.

A Tale of Two Timelines: Daily Loss vs. Monthly Gain

While the single-day performance paints a bearish picture, a wider lens reveals a more complex and volatile narrative for the stock. Despite the recent dip, Ouster has delivered significant returns for shareholders over the past month.

Monthly Momentum

In the last 30 days, Ouster's stock has surged an impressive 21.83%. This performance dramatically outpaces its sector and the market at large.

• Sector Comparison: During the same period, the broader Computer and Technology sector saw a gain of only 0.43%.
• Market Comparison: The S&P 500 benchmark index gained a modest 0.6% over the past month.

This divergence highlights Ouster's high-beta nature and suggests that investors have been betting on the company's growth story, leading to significant upward momentum that is now being tested. The recent pullback could represent profit-taking after a strong run-up or growing apprehension ahead of new financial disclosures.

Spotlight on Upcoming Earnings

The market's focus is now squarely on Ouster's forthcoming quarterly earnings report, which is expected to provide critical insights into the company's operational health and growth trajectory. Analyst consensus estimates point toward a story of significant year-over-year improvement, though profitability remains elusive.

Quarterly Expectations

• Earnings Per Share (EPS): The consensus estimate anticipates a loss of $0.39 per share for the upcoming quarter. While still a loss, this would represent a notable 18.75% improvement compared to the same quarter last year.
• Revenue: Analysts are projecting quarterly revenue of $40.85 million. This figure signifies a robust 35.76% increase from the year-ago quarter, indicating strong top-line growth and market adoption of its lidar solutions.

Full-Year Projections

Looking at the full fiscal year, Zacks Consensus Estimates provide a more tempered outlook, particularly on the revenue front.

• Full-Year EPS: The full-year earnings are estimated to be a loss of $1.53 per share. This would mark a year-over-year improvement of 26.44%, continuing the trend of narrowing losses.
• Full-Year Revenue: The consensus estimate for full-year revenue stands at $148 million. Critically, this figure represents 0% growth compared to the prior year. This flat projection stands in stark contrast to the strong quarterly growth forecast and will be a key area for investors to seek clarity on from management's guidance.

Analyst Ratings and Industry Strength

To understand the forces influencing stock price, investors often turn to analyst estimate revisions and industry-wide health metrics. These tools can provide a more nuanced view of a company's prospects beyond headline numbers.

The Zacks Rank System

Our research indicates a strong correlation between changes in analyst earnings estimates and near-term stock performance. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), is a proprietary model designed to leverage this insight.

• Current Rank: Ouster, Inc. currently holds a Zacks Rank of #3 (Hold). This neutral rating suggests that, based on recent estimate revisions, analysts believe the stock is likely to perform in line with the market in the near term.
• Estimate Stability: The Zacks Consensus EPS estimate has remained unchanged over the past month, reinforcing the "Hold" rating and indicating a wait-and-see approach from the analyst community ahead of the earnings release.

A Strong Industry Position

While Ouster's individual stock rating is neutral, it operates within a highly-ranked industry, which can provide a significant tailwind.

• Industry: Ouster is part of the Electronics - Miscellaneous Components industry.
• Industry Rank: This group currently holds a Zacks Industry Rank of 34 out of more than 250 industries, placing it in the top 14%.
• Performance Correlation: Historical data shows that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom 50% by a factor of 2 to 1. Being positioned in the top 14% is a strong positive indicator for the sector's overall health and prospects.

Implications and What to Watch Next

Investors in Ouster are currently navigating a complex set of conflicting signals. The stock's sharp one-day drop is at odds with its powerful monthly rally. Optimistic quarterly growth forecasts are tempered by a flat full-year revenue projection. A neutral "Hold" rating on the stock is contrasted by its placement within a top-performing industry.

The upcoming earnings report is the pivotal event that will either validate the recent rally or justify the latest pullback. Investors and analysts will be listening intently to management's commentary for several key items:

1. Confirmation of Growth: Will the company meet or exceed the high expectations for quarterly revenue growth?
2. Guidance Clarity: Management must address the discrepancy between strong quarterly growth and the flat full-year revenue forecast. Any upward revision to full-year guidance could serve as a powerful catalyst.
3. Path to Profitability: While losses are narrowing, any commentary on the timeline and strategy for achieving positive EPS will be crucial for long-term investor confidence.

The market has priced in a period of significant progress. The upcoming financial release will determine whether that progress is meeting, exceeding, or falling short of these high expectations, setting the stock's direction for the coming months.