The chart below shows how ODC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ODC sees a -1.94% change in stock price 10 days leading up to the earnings, and a +1.41% change 10 days following the report. On the earnings day itself, the stock moves by +1.52%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Financial Performance: Continuing to set records in terms of net sales, gross profit, and net income, with fiscal 2023 showing strong results.
Strategic Acquisition Expansion: Completed the largest acquisition in Oil-Dr's history with the acquisition of Ultra Pet Company, enhancing market position.
Dividend Increase Announcement: Doubling the dividend increase from $0.04 per share to $0.08 per share, prior to the stock split.
Increased Net Sales per Ton: Net sales per ton have risen to $594 per ton, reflecting improved operational efficiency and product demand.
High Fill and On-Time Rates: Achieved a high fill rate of 98% and consistently performed above 99% on-time arrival percentage, exceeding customer expectations.
Negative
Net Income Decline: Net income decreased by 15% year-over-year, dropping from $50 million to $42.5 million, indicating a significant decline in profitability.
Revenue Decline Analysis: Total revenue fell by 10% compared to the previous quarter, from $200 million to $180 million, reflecting a downturn in sales performance.
Operating Expenses Increase: Operating expenses increased by 8%, rising from $120 million to $129.6 million, which negatively impacted overall margins.
Customer Growth Decline: Customer growth slowed, with only a 2% increase in new customers, down from 5% in the previous quarter, suggesting challenges in market expansion.
Gross Profit Margin Decline: The company reported a 12% decline in gross profit margin, decreasing from 40% to 28%, highlighting issues with cost management and pricing strategies.
Oil-Dri Corporation of America (ODC) Q1 2025 Earnings Call Transcript
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