EMERALD HOLDING Reports Third Quarter FY2023 Earnings Results
November 22, 2023
🌥️Earnings Overview
For the third quarter of FY2023, EMERALD HOLDING ($NYSE:EEX) reported total revenue of USD 72.5 million, signifying a 16.2% growth compared to the same period of the prior year. Net income, though, saw a sharp decline of 88.5%, amounting to USD 10.7 million.
Market Price
On Monday, EMERALD HOLDING released its earnings results for the third quarter of FY2023. The decrease in earnings was mainly due to decreased revenues from its core business operations. The company’s stock opened at $5.6 and closed at $5.0, representing a decrease of 5.8% from its prior closing price of 5.3.
The decline in share price came as investors reacted to the company’s weak earnings report and outlook for the upcoming quarters. Investors should monitor the company’s performance closely in the coming quarters to assess any potential recovery or further losses. 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 |
| 374.9 | -17.5 | 9.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Emerald Holding. More…
| Operations | Investing | Financing |
| 146.1 | -47.9 | -119.3 |
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 |
| 1.08k | 1.15k | -1.04 |
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 |
| 32.8% | 45.1% | 12.1% |
| FCF Margin | ROE | ROA |
| 35.8% | -42.7% | 2.6% |
Analysis
After conducting an analysis of the fundamentals of EMERALD HOLDING, we have assigned them a health score of 6/10, indicating that they are likely to be able to sustain future operations in times of crisis. Additionally, we have classified EMERALD HOLDING as a ‘gorilla’, meaning that the company has achieved stable and high revenue or earning growth due to its strong competitive advantage. Looking at different attributes of EMERALD HOLDING, we can see that they are strong in profitability, medium in growth and weak in asset and dividend. This makes them an attractive option for value investors looking for a long-term investment that is not highly volatile. Additionally, EMERALD HOLDING could be an attractive option for growth investors who are looking for a stable company with the potential for continuous growth. 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
Investors should take a closer look at EMERALD HOLDING, after the company reported their earnings results for the third quarter of FY2023, showing a 16.2% year-over-year increase in total revenue, but a 88.5% decrease in net income. Following this news, the stock price moved down. Despite the decline in net income, the significant increase in revenue could be a sign of positive future growth.
Investors should conduct further research to assess other factors, such as the company’s overall financial health, management performance, and competitive landscape. It is important to consider that the stock price could continue to be volatile in the short term.
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