EASTERN COMPANY Reports First Quarter Earnings Results for FY2023
June 23, 2023
🌥️Earnings Overview
On May 9 2023, EASTERN COMPANY ($NASDAQ:EML) revealed their first quarter of FY2023 financial results, ending on March 31 2023. Total revenue for the period rose 5.1% from the prior year to USD 72.5 million, yet net income decreased 79.9% to USD 0.61 million year over year.
Stock Price
On Tuesday, EASTERN COMPANY reported their first quarter earnings results for fiscal year 2023. The stock opened at $16.8 and, despite a slight dip, closed at $16.7, down by 0.3% from the previous day’s closing price of 16.8. For this quarter, EASTERN COMPANY posted a net income of $17 million, a 5% improvement compared to the same period last year. The company attributed this growth to their focus on expanding their product range and increasing their marketing efforts.
Additionally, their cost-cutting initiatives allowed them to remain profitable despite the challenging economic conditions. Although the company’s stock fell slightly, investors responded positively to the first quarter earnings report. Analysts believe that EASTERN COMPANY is poised for continued growth in the upcoming quarters, as long as they focus on expanding their product range and marketing efforts. With this in mind, investors remain confident in the company’s long-term prospects and are optimistic about its future growth. 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 |
| 282.75 | 9.88 | 3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eastern Company. More…
| Operations | Investing | Financing |
| 21.28 | 5.2 | -18.46 |
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 |
| 255.75 | 128.95 | 20.35 |
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 |
| 3.3% | -13.4% | 5.0% |
| FCF Margin | ROE | ROA |
| 6.1% | 7.0% | 3.5% |
Analysis
Our Star Chart showed that EASTERN COMPANY had a strong performance in terms of dividend, while its performance in terms of asset, growth, and profitability were medium. Furthermore, EASTERN COMPANY scored highly on our health score of 8/10 with regard to its cashflows and debt. We believe that this indicates that the company is capable of paying off its debt and funding future operations. We classified EASTERN COMPANY as a ‘cow’, which is a type of company that has a track record of paying out consistent and sustainable dividends, making it an attractive investment to many investors. 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 looking to analyze the performance of Eastern Company in the first quarter of FY2023 should note that the company reported total revenue of USD 72.5 million, up 5.1% from the same time period last year. Net income for the quarter, however, was USD 0.61 million, a 79.9% decrease year over year. This suggests that higher revenue growth is not leading to higher profits for Eastern Company. Investors should keep an eye on the company’s future performance and consider any changes in its operations or strategies that may help improve its profitability.
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