The chart below shows how ISSC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ISSC sees a +6.03% change in stock price 10 days leading up to the earnings, and a +0.08% change 10 days following the report. On the earnings day itself, the stock moves by -3.14%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Net Income Increase: We generated net income of $7 million, which was up 16% from the prior year.
EBITDA Growth Surge: Total EBITDA was approximately $12 million, which was up 36% from the prior year and is up nearly three folds from just three years ago.
Q4 Revenue Growth Surge: During the fourth quarter, we delivered more than 18% year-over-year growth in revenue, driven by momentum from new military programs and recently acquired platforms.
Improved Operating Leverage: We realized improved operating leverage, a dynamic we expect to continue into the coming year.
Cash Flow Increase: We generated cash flow from operations of $5.8 million, up $2.1 million in the year ago comparable period.
Negative
Revenue Impact from True-Up Payment: The fourth quarter 2024 revenues were impacted by a $1.7 million true-up payment for services performed by third parties.
Net Debt Increase: Total net debt as of September 30, 2024 was $27.5 million, up from $16.4 million at the end of 2023, reflecting the incremental debt to fund the recent Honeywell transactions.
R&D Expense Increase: Research and development expense during the fourth quarter of 2024 was $1.1 million, an increase from approximately $740,000 in the comparable period last year.
SG&A Expense Reduction: Selling, general and administrative expenses were $3.1 million, a decrease of $3.7 million from last year.
Quarterly Net Income Comparison: Fourth quarter net income was $3.2 million or $0.18 per diluted share compared to net income of $2.6 million or 15% per diluted share a year ago.
Innovative Solutions and Support, Inc. (ISSC) Q4 2024 Earnings Call Transcript
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