A-MARK PRECIOUS METALS Reports First Quarter FY2024 Financial Results on September 30 2023
December 11, 2023
☀️Earnings Overview
The financial results for A-MARK PRECIOUS METALS ($NASDAQ:AMRK)’ first quarter of FY2024 were released on September 30 2023, showing total revenue of USD 2484.6 million, a 30.7% increase from the same period in the previous year. However, net income decreased by 58.3%, amounting to USD 18.8 million compared to the same quarter of the prior year.
Market Price
On Wednesday, A-MARK PRECIOUS METALS reported their first-quarter financial results for the fiscal year 2024. Overall stock prices opened at $23.8 and closed at $24.6, a decrease of 6.8% from its previous closing price of $26.4. This reflects a disappointing quarter for the company, tainting its financial outlook for the remainder of the year. This, in combination with some underperforming investments, caused the stock price to dip significantly. Furthermore, the company’s balance sheet revealed a weaker liquidity position than previously expected.
The first quarter results were not what A-MARK PRECIOUS METALS had hoped for, and investors will undoubtedly be watching closely to see if the company can turn things around in the coming months. Management is now focused on restructuring operations to increase efficiency, reduce costs, and generate higher returns. With continued analysis and adjustments, A-MARK PRECIOUS METALS is confident they can improve their financial outlook and regain investor confidence. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AMRK. More…
| Total Revenues | Net Income | Net Margin |
| 9.87k | 130.06 | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AMRK. More…
| Operations | Investing | Financing |
| -354.21 | -30.7 | 368.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AMRK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.58k | 996.15 | 24.93 |
Key Ratios Snapshot
Some of the financial key ratios for AMRK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.1% | 43.4% | 2.1% |
| FCF Margin | ROE | ROA |
| -3.7% | 21.6% | 8.1% |
Analysis
GoodWhale has completed an analysis of A-MARK PRECIOUS METALS’ financials. Our Star Chart rating system reveals that A-MARK PRECIOUS METALS has an intermediate health score of 4/10 considering its cashflows and debt, indicating that it is likely to pay off its debt and fund future operations. Furthermore, we classify A-MARK PRECIOUS METALS as a ‘cheetah’, a type of company that has experienced rapid revenue or earnings growth but is considered less stable due to its lower profitability. Investors who are interested in companies with high asset growth, moderate dividend, and medium profitability may find A-MARK PRECIOUS METALS of interest. The company’s Star Chart score reflects its potential for continued success over the long-term, as its debt and cashflow levels are deemed adequate to support future growth. As such, A-MARK PRECIOUS METALS may be an attractive option for investors looking for a business that is set up for success over the long-term. More…
Peers
The company has a long history dating back to its founding in 1965, and has been a trusted dealer for many years. A-Mark Precious Metals Inc’s main competitors are ABans Enterprises Ltd, eBullion Inc, Yash Management & Satellite Ltd. These companies are all precious metals dealers that offer similar products and services. A-Mark Precious Metals Inc has a competitive advantage over its competitors due to its long history and reputation as a trusted dealer.
– ABans Enterprises Ltd ($BSE:512165)
HBan Enterprises Ltd is a holding company that operates in the communications and entertainment industries. The company has a market capitalization of 1.77 billion as of 2022 and a return on equity of 13.61%. The company’s businesses include wireless communications, cable television, and broadband Internet services.
– eBullion Inc ($OTCPK:EBML)
eBullion Inc is a privately held electronic bullion exchange and vault operator, headquartered in Los Angeles, California. The company was founded in 2001. eBullion Inc is one of the first companies to offer online buying, selling, and storing of precious metals. The company offers a variety of services, including online trading, storage, and delivery of precious metals.
– Yash Management & Satellite Ltd ($BSE:511601)
Yash Management & Satellite Ltd is a leading provider of management and satellite services. The company has a market cap of 186.83M as of 2022 and a Return on Equity of 2.8%. Yash Management & Satellite Ltd provides management and satellite services to a wide range of clients, including government agencies, businesses, and individuals. The company has a long history of providing quality services and is known for its customer service and satisfaction.
Summary
A-MARK PRECIOUS METALS reported their first quarter of FY2024 financial results on September 30th, 2023. Total revenue increased by 30.7% compared to the same period of the prior year, however net income decreased by 58.3%. This resulted in a drop in stock price on the same day. Investors should be aware that A-MARK PRECIOUS METALS is currently facing a challenging period of decreasing profitability, and should be conscious of the potential risks associated with investing in this precious metals company.
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