The chart below shows how SANW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SANW sees a -3.98% change in stock price 10 days leading up to the earnings, and a -7.41% change 10 days following the report. On the earnings day itself, the stock moves by +1.18%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Growth Surge: Double Team revenue grew 68% from $6.5 million in fiscal 2023 to $10.9 million last year, contributing gross margins of approximately 70%.
Revenue Decline Analysis: Total Australia domestic and international revenue increased from $43.6 million to $29.1 million, a decline of more than $14 million or 33%.
Gross Profit Margin Decline: Preliminary gross profit margin for Q1 was 16% compared to 25% in last year's Q1, largely attributable to no sales in Saudi Arabia in this year's Q1 results compared to last year.
Gross Margin Expectations: We expect total gross margins for the ongoing business for fiscal 2025 to be between 33% and 36%, compared to a total gross margin of 26.2% from last year.
Adjusted EBITDA Forecast: We are expecting adjusted EBITDA for the year to be between a negative $5 million on the low end to a negative $3 million on the high end.
Negative
Revenue Decline Analysis: Total revenue for Q1 was $8.3 million compared to $10.8 million in the prior year's first quarter, indicating a decline of approximately 23.1%.
Gross Profit Margin Decline: Preliminary gross profit margin for Q1 was 16% compared to 25% in last year's Q1, reflecting a significant decrease in profitability.
Declining EBITDA Performance: Preliminary adjusted EBITDA for Q1 was a negative $3.1 million, worsening from a negative $1.7 million in last year's Q1.
Revenue Decline Overview: Total Australia domestic and international revenue decreased from $43.6 million to $29.1 million, a decline of over $14 million or 33%.
Operating Expenses Reduction: Total operating expenses for Q1 were $5.6 million compared to $5.7 million last year, indicating a slight reduction but still reflecting ongoing cost pressures.
S&W Seed Company (SANW) Q1 2025 Earnings Call Transcript
SANW.O
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