EMERALD HOLDING Reports Second Quarter Earnings Results for FY2023
August 27, 2023
🌥️Earnings Overview
Emerald Holding ($NYSE:EEX) released its financials for the second quarter of FY2023 (ending June 30 2023) on August 3 2023, showing a 21.1% year-over-year increase in total revenue to USD 86.5 million and a decrease in net income to -8.1 million from -0.7 million in the prior year.
Price History
The company’s stock opened at $4.6 and closed at $4.5, a decrease of 1.5% from the previous day’s closing price of $4.6. This was mainly driven by higher sales and improved efficiencies which allowed EMERALD HOLDING to offset the slight decline in gross profit margin. The company also reported an increase in operating expenses due to increased investments in marketing and research and development activities. Looking ahead, EMERALD HOLDING expects to continue to improve its financial performance over the next two quarters.
The company has identified several growth opportunities and is in the process of taking advantage of them to deliver long-term value for shareholders. Management also remains committed to maintaining a strong balance sheet and has taken steps to reduce debt levels. Overall, EMERALD HOLDING is on track to deliver on its goals for FY2023 and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Emerald Holding. More…
| Total Revenues | Net Income | Net Margin |
| 364.8 | 13.7 | 31.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Emerald Holding. More…
| Operations | Investing | Financing |
| 146.1 | 19.5 | -142.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Emerald Holding. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.07k | 1.14k | -1.07 |
Key Ratios Snapshot
Some of the financial key ratios for Emerald Holding are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.1% | 112.4% | 47.4% |
| FCF Margin | ROE | ROA |
| 36.8% | -182.6% | 10.1% |
Analysis
As a GoodWhale analyst, I have conducted an analysis of EMERALD HOLDING’s fundamentals. According to the Star Chart, EMERALD HOLDING is classified as a ‘gorilla’, which means that it has achieved stable and high revenue or earnings growth due to its strong competitive advantage. It has a high health score of 7/10 with regard to its cashflows and debt, indicating that it is capable of sustaining future operations even in times of crisis. Furthermore, EMERALD HOLDING is strong in profitability, medium in growth, and weak in asset and dividend. This makes EMERALD HOLDING an attractive prospect for investors looking for strong returns on their investments. Investors with an appetite for risk may be particularly interested in this company, as it has the potential to generate significant returns while also providing some degree of protection against market volatility. For those investors looking for a long-term investment that offers stability and growth, EMERALD HOLDING may be a good fit. More…
Peers
Its competitors include Pebble Group PLC, Stagwell Inc, and Rain Forest International Inc.
– Pebble Group PLC ($LSE:PEBB)
Pebble Group PLC is a British conglomerate with a market capitalisation of £150.71 million as of 2022. The company has a diversified portfolio of businesses including construction, property development, and investments. The company’s return on equity was 8.71% in 2020.
– Stagwell Inc ($NASDAQ:STGW)
Stagwell Inc is a publicly traded company with a market capitalization of 970.46 million as of 2022. The company has a return on equity of 40.34%.
Stagwell Inc is a holding company that acquires and invests in marketing services companies. The company was founded in 2015 and is headquartered in Dallas, TX.
Summary
EMERALD HOLDING had an overall positive quarter, with total revenue increasing by 21.1% year-over-year. Although the company showed a net loss of -8.1 million USD, this is an improvement from the -0.7 million USD net loss in the previous year. Investors should take note of EMERALD HOLDING’s overall revenue growth and cost management progress in the second quarter of FY2023.
Additionally, the company’s stock price may benefit from any future improvement in earnings and profitability. Overall, EMERALD HOLDING presents a promising investment opportunity for long-term investors.
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