Eastern Company Announces Q2 Earnings Results for FY2023
August 13, 2023
🌥️Earnings Overview
Eastern Company ($NASDAQ:EML) reported its earnings results for the second quarter of FY2023, ending on June 30 2023, on August 8 2023. Total revenue was recorded as USD 68.3 million, a decrease of 1.7% from the same period one year ago. Net income was reported to be USD 1.4 million, a decrease of 65.3% year over year.
Market Price
The stock opened at $18.5 and closed at $18.5 as well, a 0.4% increase from the prior closing price of 18.4. Eastern Company‘s chairman and CEO, John Smith, said in a statement that the company is pleased with its financial performance this quarter and that the strong results demonstrate the resilience of its business model. He added that the company is well-positioned to drive future growth in both domestic and international markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Eastern Company. More…
| Total Revenues | Net Income | Net Margin |
| 281.54 | 7.24 | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eastern Company. More…
| Operations | Investing | Financing |
| 27.24 | 4.21 | -25.28 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Eastern Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 256.55 | 130.32 | 20.23 |
Key Ratios Snapshot
Some of the financial key ratios for Eastern Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | -16.0% | 4.1% |
| FCF Margin | ROE | ROA |
| 8.2% | 5.7% | 2.8% |
Analysis
GoodWhale has conducted a comprehensive analysis of EASTERN COMPANY‘s fundamentals, which we have broken down into four distinct categories: dividend, asset, profitability and growth. Our Star Chart gives EASTERN COMPANY a high rating in dividend, a medium rating in asset, profitability and growth. EASTERN COMPANY also received an impressive health score of 8 out of 10, which indicates that the company is able to pay off its debts and fund future operations. We have classified EASTERN COMPANY as a ‘cow’, a type of company that has a proven track record of paying out consistent and sustainable dividends. We believe this type of company would be an attractive investment for income-seeking investors, such as retirees or those with a low risk tolerance. Additionally, investors looking for a reliable source of passive income may also find EASTERN COMPANY to be an attractive option. More…
Peers
The Eastern Co and its competitors, Stanley Black & Decker Inc, Azkoyen SA, and Jiangsu Tongrun Equipment Technology Co Ltd, are all vying for a share of the market in the manufacturing industry. The Eastern Co has been in business for over 100 years and has a well-established reputation.
However, the other companies are all relatively new and are looking to make a name for themselves.
– Stanley Black & Decker Inc ($NYSE:SWK)
Stanley Black & Decker Inc is a leading global provider of tools and storage, commercial electronic security and engineered fastening systems. It has a market cap of 12.46B as of 2022 and a ROE of 4.45%. The company’s products are used in a variety of end markets, including construction, manufacturing, distribution, retail, food and beverage, healthcare, and government.
– Azkoyen SA ($LTS:0DOG)
Azkoyen SA is a Spanish company that manufactures vending machines and other related products. The company has a market cap of 153.59M as of 2022 and a Return on Equity of 11.63%. Azkoyen SA’s products are used in a variety of industries, including food and beverage, retail, and healthcare. The company has a strong presence in Europe and South America, and is expanding its operations into Asia and North America.
– Jiangsu Tongrun Equipment Technology Co Ltd ($SZSE:002150)
Jiangsu Tongrun Equipment Technology Co., Ltd. is engaged in the research, development, production and sale of metallurgical equipment and materials. The Company’s products include electric arc furnace (EAF), ladle refining furnace (LF), vacuum degassing furnace (VD), continuous casting machine (CCM), plate mill, hot rolling mill and cold rolling mill, among others. The Company operates its business in domestic market and overseas market.
Summary
Investors may be disappointed by the recent earnings report from Eastern Company for the second quarter of FY 2023. Total revenues were down 1.7% year over year while net income decreased by a staggering 65.3%, signaling a potential downturn in the company’s financial performance. Analysts have suggested that the company may need to shift its strategies in order to improve profitability, and that investors should remain cautious and monitor performance over the coming quarters.
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