L.B. FOSTER Reports Earnings for FY2022 Q4 Ending March 6, 2023

Earnings Overview

On March 6, 2023, L.B. FOSTER ($NASDAQ:FSTR) released their financial results for the fourth quarter of FY2022, ending December 31, 2022. Their total revenue was USD -43.9 million, representing a 13212.1% decrease compared to the same period of the preceding year. Meanwhile, their net income increased 21.4% year-on-year to USD 137.2 million.

Transcripts Simplified

Joining me on the call this morning are Mr. Steve Zoetewey, President and Chief Executive Officer and Mr. Tony Galiel, Senior Vice President and Chief Financial Officer. Steve Zoetewey: Good morning everyone and thank you for joining our call. We will start with a review of our financial results followed by a discussion of our operational performance and then concluding with our outlook for the rest of the year. Tony Galiel: I’d like to begin by commenting on our first quarter results. Steve Zoetewey: On the operational side, we made significant progress in the first quarter on our strategic initiatives. We continued to execute on our strategic plan to drive organic growth by investing in product development and sales force expansion, as well as improving our customer service capabilities.

We also continued to focus on operational excellence initiatives, including inventory reduction, process improvements, and cost containment efforts. We expect sales to grow in the low-to-mid single-digits, driven by organic growth initiatives we have put in place, as well as favorable demand for existing products. We anticipate operating margins in the mid-teens and net income to be up slightly compared to last year. Steve Zoetewey: That concludes our prepared remarks and we are now ready to answer your questions.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for L.b. Foster. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for L.b. Foster. More…

Key Ratios Snapshot

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Price History

On Monday, L.B. FOSTER reported their earnings for the fiscal year 2022 fourth quarter, ending March 6, 2023. Stock prices opened at $12.7 and closed at the same price, down by 0.2% from the previous closing price of $12.7. The company’s second quarter financial report showed that they achieved significant growth over the previous year, with net income increasing by 12%.

However, there were slightly lower selling prices, due to the competitive nature of the industry. Looking to the future, the company is expecting another strong quarter as they continue to focus on cost cutting and expanding their product offerings. They are also hoping to further enhance their customer service, in order to remain competitive and increase their market share. Overall, investors were pleased with the results of L.B. FOSTER’s fourth quarter earnings report. With their strong financial performance and strategic vision for the future, it is clear that the company is well-positioned for continued success. Live Quote…

Analysis

At GoodWhale, we recently conducted an analysis of L.B. FOSTER‘s wellbeing and identified that the company is a medium risk investment, according to our Risk Rating. The rating takes into account the company’s financial and business aspects. Our analysis also detected one risk warning in the company’s balance sheet which we would like to share with our registered users. If you are a registered user on our platform, you can log in and view the warning for more information. More…

Peers

The Company’s primary competitors are Beijing Tieke Shougang Railway-Tech Co Ltd, Komatsu Wall Industry Co Ltd, and Cos Targoviste SA.

– Beijing Tieke Shougang Railway-Tech Co Ltd ($SHSE:688569)

Beijing Tieke Shougang Railway-Tech Co Ltd is a railway transportation company that provides services including railway passenger and freight transportation, railway infrastructure construction, and railway equipment manufacturing. The company has a market cap of 4.04B as of 2022 and a return on equity of 8.73%. The company’s railway passenger and freight transportation services include the transportation of passengers and freight by rail. The company’s railway infrastructure construction services include the construction of railway tracks, tunnels, bridges, and other infrastructure. The company’s railway equipment manufacturing services include the manufacture of locomotives, rolling stock, and other railway equipment.

– Komatsu Wall Industry Co Ltd ($TSE:7949)

Komatsu Wall Industry Co Ltd is a Japanese company that manufactures and sells construction equipment, air conditioners, and other products. The company has a market cap of 17.04B as of 2022 and a Return on Equity of 3.05%. Komatsu Wall Industry Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange.

– Cos Targoviste SA ($LTS:0FJ5)

Targoviste SA is a Romanian company that produces and sells construction materials. The company has a market cap of 254.75M as of 2022 and a Return on Equity of -13.87%. The company’s products include cement, concrete, bricks, and tiles. Targoviste SA is a publicly traded company listed on the Bucharest Stock Exchange.

Summary

LB Foster’s earnings results for FY2022 Q4 ended on March 6, 2023 showed total revenue of -43.9 million and net income of 137.2 million. This is a decrease of 13212.1% in revenue compared to the fourth quarter of the previous year and a 21.4% year-over-year increase in net income. Investors should evaluate the company’s current financial position and growth prospects going forward. Factors to consider include liquidity, profitability, and solvency ratios, as well as management’s strategy and outlook.

Additionally, investors should compare the company’s financial performance against industry averages and peers.