EML Earnings Prediction
The chart below shows how EML performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EML sees a +2.02% change in stock price 10 days leading up to the earnings, and a +3.67% change 10 days following the report. On the earnings day itself, the stock moves by +2.97%. This data can give you a slight idea of what to expect for the next quarter's release.
EML Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
71.27M
8.59%
-2.57%
Gross Margin
25.52%
2.28%
2.53%
Operating Margin
9.53%
19.12%
29.84%
Net Margin
6.55%
40.26%
36.46%
EPS
-2.47
-604.08%
-541.07%
No Data Available
EML Earnings Analysis
Eastern Company Corporation (EML.O) Earnings Conference Call
Positive
Net Sales Increase: Net sales increased 15% to $71.3 million from $62 million in the 2023 period, primarily due to increased demand for returnable trans-fat packaging products and truck mirror assemblies and truck accessories.
Backlog Increase Analysis: Our backlog as of September 28, 2024, rose 13% to $97.2 million compared to $86.2 million as of September 30, 2023, driven by increased orders for various truck mirror assemblies and returnable transport packaging products.
Gross Margin Improvement: Gross margin as a percentage of sales in the third quarter was 25.5% compared to 24.9% in the 2023 period, reflecting improved price/cost alignment and other cost savings initiatives.
Adjusted Net Income Increase: Adjusted net income from continuing operations, a non-GAAP measure for the third quarter of 2024, was $4.7 million or $0.75 per diluted share compared to adjusted net income from continuing operations of $3.5 million or $0.55 per diluted share for the prior year period.
Share Repurchase Update: We repurchased 50,000 shares of common stock under the share repurchase program our board authorized in August 2023, bringing us to a total of approximately 110,000 shares repurchased under the buyback program.
Negative
Mold Business Write Down: The loss recognized in the write down of the Big 3 Mold business to fair value in the third quarter was $19.2 million net of tax.
Rising Selling Expenses: Selling and administrative expenses increased $1.9 million or 22% for the third quarter of 2024 compared to last year's period.
Adjusted Net Income Increase: Adjusted net income from continuing operations, a non-GAAP measure for the third quarter of 2024 was $4.7 million or $0.75 per diluted share compared to adjusted net income from continuing operations of $3.5 million or $0.55 per diluted share for the prior year period.
Operating Cash Flow Decline: Cash flow from operating activities in the 2024 period was lower compared to last year's period, primarily due to increases in accounts receivable of $11.7 million due to increases in revenue in the third quarter of 2024, compared to the corresponding period in 2023.
Net Leverage Ratio Increase: At the end of the third quarter, our senior net leverage ratio was 1.4 compared to 1.2 to 1 at the end of the second quarter.
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EML Earning Call Sentiment
The Eastern Company (EML) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
EML.O
-3.06%Positive
The earnings call summary presents mixed signals: positive financial performance with increased revenue and gross margin, but concerns about rising expenses and cash flow challenges. The Q&A section reveals management's reluctance to discuss short-term plans, which may unsettle investors. The decision to sell a non-core business and focus on strengths is positive, but increased leverage and economic risks are concerning. Overall, the sentiment is neutral as positives are balanced by potential risks.
