CTHR Earnings Prediction
The chart below shows how CTHR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CTHR sees a -1.55% change in stock price 10 days leading up to the earnings, and a -10.63% change 10 days following the report. On the earnings day itself, the stock moves by -1.29%. This data can give you a slight idea of what to expect for the next quarter's release.
CTHR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.26M
-20.77%
-33.44%
Gross Margin
22.54%
-30.32%
-37.60%
Operating Margin
-70.28%
114.92%
89.13%
Net Margin
-69.04%
-45.38%
90.46%
EPS
-1.20
-328.57%
1233.33%
No Data Available
CTHR Earnings Analysis
Charles & Colvard, Ltd. Corporation (CTHR.O) Earnings Conference Call
Positive
Despite challenging market conditions, revenue declines have shown improvement across sequential quarters, indicating progress towards profitability. Q3 revenue was $5.3 million, down 21% compared to Q3 FY 2023, but with a 12 basis points improvement over Q1 FY 2024. Margin erosion continued due to various factors, but strategic initiatives are in place to stabilize product margins and reduce costs.
Forever One Moissanite brand saw a 5% revenue increase compared to Q3 FY 2023, and KDL lab-grown diamond sales were up 16% compared to the year ago quarter. The wider acceptance of lab-grown gems by luxury brands like Prada validates Charles & Colvard's strategic focus on lab-grown gems.
Inventory decreased by 24% during the quarter as the company refined its jewelry offerings based on consumer preferences. Investments in digital marketing, e-commerce, and brand ambassadors like Skyler Samuels and Erin Lim have shown positive results, with Valentine's Day sales comprising 52% of charlesandcolvard.com revenue.
Continued investments in top of funnel marketing, influencer campaigns, and brand awareness initiatives are driving consumer reach and brand equity. Increased user-generated content, ethical consumerism campaigns, and concentrated social media efforts are enhancing the company's marketing efforts and expanding the customer base.
Strategic initiatives such as the launch of charlesandcolvarddirect.com wholesale portal, improvements in inventory management, and cost reduction efforts are aimed at increasing shareholder value and brand equity. Access to $5 million cash secured credit facility with JPMorgan Chase Bank provides additional liquidity for the company.
Negative
- Revenue for Q3 was $5.3 million, a 21% decrease compared to Q3 FY 2023.
- Gross margin decreased to 23% from 32% in the year-ago quarter due to rising commodity prices and promotional pricing pressure.
- Operating expenses increased by 13% from the year-ago quarter, with sales and marketing expenses reaching $3.7 million.
- The net loss for Q3 was $3.6 million, an improvement from the $8.4 million net loss in the year-ago period.
- Cash flow used in operations was $2.1 million during the quarter, compared to $800,000 used in the same quarter a year ago.
- Inventory decreased by 24%, reflecting ongoing challenges in refining jewelry offerings and managing consumer preferences.
