HBB Earnings Prediction
The chart below shows how HBB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HBB sees a -1.33% change in stock price 10 days leading up to the earnings, and a +3.53% change 10 days following the report. On the earnings day itself, the stock moves by +0.35%. This data can give you a slight idea of what to expect for the next quarter's release.
HBB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
213.51M
3.32%
36.28%
Gross Margin
26.08%
-2.43%
-6.86%
Operating Margin
11.04%
-8.68%
62.83%
Net Margin
11.24%
18.69%
806.45%
EPS
1.75
25.00%
1150.00%
No Data Available
HBB Earnings Analysis
Hamilton Beach Brands Holding Co Corporation (HBB.N) Earnings Conference Call
Positive
Q4 Performance and Profitability: Strong Q4 performance with low single-digit growth and profitability exceeding expectations.
Strong Gross Margins Maintained: Maintained strong gross margins above 26% despite a competitive market environment during the holidays.
Revenue Growth Drivers: Full year revenue increased mid-single digits, driven by successful new product launches and new distribution points.
Margin Expansion and Profit Growth: Expanded gross margins by 300 basis points and grew operating profit by 23%.
Strong Operating Cash Flow: Generated over $65 million in operating cash flow, reflecting the strength of the business model and execution.
Net Cash Position Achievement: Ended 2024 in a net cash position, a significant achievement while returning value to shareholders through share repurchases and dividends.
Innovative Product Launch Success: Successful introduction of innovative new products, such as the FlexBrew Coffee maker, contributing to market share gains.
U.S. Consumer Market Share Growth: Gained share in the U.S. consumer market with a growth rate of 3.6%, outpacing the overall market.
Premium Product Segment Growth: Strong performance in the premium product segment, with mid-teens percentage of overall revenue and significant growth opportunities.
Healthcare Market Expansion: Successful acquisition of HealthBeacon, expanding into the healthcare market with promising growth plans.
Commercial Business Growth: Solid growth in commercial business, highlighted by a 50% increase in sales of the Summit Edge blender.
Increased Marketing Investment Plans: Plans for increased marketing investment in 2025 to support strategic growth initiatives.
Negative
Gross Profit Margin Decline: Gross profit margin decreased to 26.1% in Q4 2024 from 26.8% in Q4 2023, indicating a contraction in profitability despite overall revenue growth.
Rising Operational Costs: Selling, general and administrative expenses increased to $32.1 million in Q4 2024 from $30.2 million in Q4 2023, driven by HealthBeacon expenses, which could indicate rising operational costs.
Operating Profit Decline: Operating profit fell to $23.6 million in Q4 2024 from $25 million in Q4 2023, suggesting a decline in operational efficiency or increased costs.
Net Income Analysis: Net income for Q4 2024 was $24 million, which included a $1 million tax benefit that is not expected to recur, indicating potential volatility in future earnings.
Decline in Cash Flow: Cash flow from operations decreased to $65.4 million in 2024 from $88.6 million in 2023, reflecting a decline in working capital improvements post-pandemic.
Pension Plan Termination Impact: The company recorded a $5.7 million negative impact from pension plan termination in Q3 2024, which could affect future financial stability.
2025 Revenue Growth Outlook: The anticipated revenue growth for 2025 is only in the mid-single-digit range, which may not be sufficient to meet investor expectations in a competitive market.
HBB FAQs
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HBB Earning Call Sentiment
Hamilton Beach Brands Holding Company (HBB) Q4 2024 Earnings Call Transcript
HBB.N
0.5%Positive
The earnings call reflects mixed signals: strong financial performance with revenue and net income growth, but offset by declining margins and increased operational costs. The optimistic guidance and shareholder returns are positives, but supply chain challenges, competitive pressures, and management's vague responses in the Q&A section raise concerns. Without a market cap, the prediction assumes moderate reaction, resulting in a neutral outlook (-2% to 2%).
