EASTERN COMPANY Reports Q2 FY2023 Earnings Results on June 30 2023
August 26, 2023
🌥️Earnings Overview
EASTERN COMPANY ($NASDAQ:EML) reported their earnings results for the second quarter of FY2023 on June 30 2023, with total revenue of USD 68.3 million, a decrease of 1.7% compared to the same period of the previous year. Net income decreased 65.3% to USD 1.4 million year over year.
Stock Price
The company’s stock opened at $18.5 and closed at the same price, up 0.4% from its closing price of 18.4 the previous day. Although their top line saw a slight increase, their expenses also increased on account of higher material costs and personnel costs. In spite of the reported decline in net income for the quarter, EASTERN COMPANY‘s management was optimistic about the company’s future prospects. They mentioned that their new product initiatives had started to bear fruit and their market share had grown in the current quarter, indicating a positive outlook for the coming quarters.
Overall, EASTERN COMPANY’s second quarter FY2023 earnings results were slightly better than expected, as revenues were slightly higher than anticipated. The company’s management is hopeful about the company’s future prospects, as evidenced by the growth in their market share during the current quarter. With these positive results, investors are likely to remain bullish on the company’s stock in the coming quarters. 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
At GoodWhale, we recently conducted an analysis of EASTERN COMPANY‘s wellbeing. Our Risk Rating for EASTERN COMPANY’s financial and business aspects determined it to be a medium risk investment. We believe that, with the right guidance and support, EASTERN COMPANY could be on a path to success. In our review of EASTERN COMPANY’s income statement and balance sheet, we identified two potential risk warnings that may be of interest to investors. To access this information, users must register with GoodWhale. As soon as we have more information, we will make it available to our users. 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 concerned with EASTERN COMPANY‘s second quarter FY2023 results, which saw a decrease in total revenue of 1.7% year over year, and a 65.3% decline in net income compared to the same period of the previous year. Although the decrease in revenue may be a cause for concern, investors should consider that the company may have experienced significant external pressures such as a volatile market or macroeconomic factors that affected their performance. In addition, it is important to evaluate the company’s overall performance over the past few quarters to get a better idea of what the future holds.
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