ARC DOCUMENT SOLUTIONS Reports Positive Financial Results for Q2 FY 2023
August 25, 2023
☀️Earnings Overview
ARC DOCUMENT SOLUTIONS ($NYSE:ARC) revealed their financial results for the second quarter of Fiscal Year 2023 on June 30th 2023. Total revenue was USD 72.3 million, 3.0% lower than the corresponding period in the prior year, while net income was USD 4.0 million, an increase of 23.3% compared to the same period in the prior year.
Stock Price
The company’s stock opened at $3.3 and closed at $3.2, a drop of 7.9% from the last closing price of $3.4. Despite this minor downturn, the overall financial situation for the company was strong, with several key metrics showing significant growth. This growth was driven mainly by increased demand for ARC’s products and services from both large and small customers. This was mainly due to cost cutting measures taken by the company to reduce expenses. This positive cash flow is expected to continue into the next quarter and allow ARC DOCUMENT SOLUTIONS to make additional investments in its products and services.
Overall, Q2 FY 2023 was a successful quarter for ARC DOCUMENT SOLUTIONS. The company saw strong growth in key financial metrics, while maintaining strong balance sheet. This positive news is expected to continue into the next quarter, further strengthening ARC DOCUMENT SOLUTIONS’ financial position. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ARC. More…
| Total Revenues | Net Income | Net Margin |
| 283.23 | 11.82 | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ARC. More…
| Operations | Investing | Financing |
| 39.85 | -7.36 | -25.87 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ARC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 300.79 | 142.89 | 3.62 |
Key Ratios Snapshot
Some of the financial key ratios for ARC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.8% | 16.5% | 6.8% |
| FCF Margin | ROE | ROA |
| 11.3% | 7.8% | 4.0% |
Analysis
At GoodWhale, we recently conducted an analysis of ARC DOCUMENT SOLUTIONS’s financials. We have determined that ARC DOCUMENT SOLUTIONS is a low risk investment in terms of financial and business aspects. Upon further review, two risk warnings were detected in the income sheet and balance sheet. These risk warnings indicate potential areas of concern that investors should be aware of. To gain access to this detailed information, become a registered user on GoodWhale. More…
Peers
Its competitors include Kawase Computer Supplies Co Ltd, iMarketKorea Inc, and Zhejiang Meorient Commerce & Exhibition Inc.
– Kawase Computer Supplies Co Ltd ($TSE:7851)
Kawase is a Japanese computer supplies company with a market cap of 1.01B as of 2022. The company has a return on equity of 0.45%. Kawase Computer Supplies Co Ltd is a manufacturer and distributor of computer supplies and accessories. The company offers a wide range of products, including keyboards, mice, printers, and scanners.
– iMarketKorea Inc ($KOSE:122900)
Samsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in Suwon, South Korea. It is the world’s second-largest information technology company by revenue, after Apple Inc. and the world’s largest manufacturer of mobile phones and smartphones, with a market share of 22.6 percent in the second quarter of 2012.
– Zhejiang Meorient Commerce & Exhibition Inc ($SZSE:300795)
Zhejiang Meorient Commerce & Exhibition Inc is a holding company that engages in the exhibition and conference businesses. The company operates through four segments: Exhibition, Conference, Advertising, and Investment. It has a market cap of 3.44B as of 2022 and a Return on Equity of -5.89%. The company was founded in 1996 and is headquartered in Hangzhou, China.
Summary
Investors in ARC DOCUMENT SOLUTIONS were given mixed signals on June 30th, 2023 as the company reported its financial results for the second quarter of Fiscal Year 2023. Total revenue for the quarter was USD 72.3 million, 3.0% lower than the same period in the prior year.
However, net income saw an increase of 23.3%, totaling USD 4.0 million. Consequently, the stock price moved down for the day, indicating investors were not encouraged by the results. Moving forward, investors will be watching to see if the company can even out its performance and reach its goals for the year.
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