The chart below shows how TATT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TATT sees a -10.05% change in stock price 10 days leading up to the earnings, and a +1.28% change 10 days following the report. On the earnings day itself, the stock moves by -0.86%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Surge 35%: Revenue increased by 35% to $40.5 million compared to $29.9 million in the same period last year.
Net Income Increase: Net income increased by 33% from $2.2 million to $2.9 million in this quarter.
EBITDA Margin Increase: Adjusted EBITDA margin rose by 70% from 10.1% to 12.6% in Q3 of '24.
Operating Margin Improvement: Operating margin improved significantly from 5.9% to 8.5% compared to the previous period.
Cash Flow Improvement: The company reported a $6.5 million positive swing in cash flow from operations compared to the same period last year.
Negative
Significant Revenue Growth: Revenue increased by 35% to $40.5 million compared to $29.9 million in the same period last year, indicating a significant growth but also highlighting the challenges in maintaining consistent growth rates.
Gross Margin Decline: Gross margin decreased from 21.9% in Q2 of '24 to 21.1% in Q3 of '24, suggesting potential issues in cost management or pricing strategies.
Backlog Growth and Challenges: The backlog continues to grow, indicating demand but also potential challenges in fulfilling orders and managing supply chain issues effectively.
Operating Margin Improvement: Operating margin showed improvement but remains a concern as it only increased from 5.9% to 8.5%, indicating that operational efficiencies are still being sought after.
Supply Chain Challenges: The company faces ongoing supply chain disruptions, which are impacting its ability to meet customer demand and could hinder future growth.
TAT Technologies Ltd. (TATT) Q3 2024 Earnings Call Transcript
TATT.O
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