LARGO INC Reports Strong Third Quarter Earnings for 2023
December 18, 2023
☀️Earnings Overview
LARGO INC ($NASDAQ:LGO) reported a decrease in total revenue and net income for the third quarter of fiscal year 2023, which ended on November 8 2023. Total revenue for the quarter amounted to USD 44.0 million, a 18.9% decrease from the same quarter in the prior year. Net income for the quarter was USD -11.4 million, compared to the prior year’s -2.1 million.
Stock Price
On Wednesday, LARGO INC reported strong third quarter earnings for the year 2023. The stock opened at $2.3 and closed at $2.2, representing a 4.4% drop from the prior closing price of $2.2. This was largely driven by higher sales of their flagship products, such as the Largo Air Purifier and the Largo Drinking Water System, both of which delivered strong growth in the quarter.
The company also announced plans to invest in new product development and research, as well as increasing their marketing spending in order to further expand their customer base. Overall, the company’s strong financial performance is a positive indication of their long-term prospects and provides a good outlook for their future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Largo Inc. More…
| Total Revenues | Net Income | Net Margin |
| 202.01 | -34.04 | -9.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Largo Inc. More…
| Operations | Investing | Financing |
| 9.92 | -79.86 | 46.42 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Largo Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 372.25 | 109.38 | 3.97 |
Key Ratios Snapshot
Some of the financial key ratios for Largo Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.1% | -48.4% | -14.6% |
| FCF Margin | ROE | ROA |
| -24.9% | -7.0% | -5.0% |
Analysis
As GoodWhale, we have come to the conclusion that LARGO INC is classified as an ‘elephant’, a type of company that is rich in assets after liabilities are deducted. This means LARGO INC has a high health score of 8/10, allowing it to safely ride out any crisis without the risk of bankruptcy. Furthermore, after closely examining their Star Chart, we found that LARGO INC is strong in assets, medium in growth, profitability and weak in dividend. This makes LARGO INC an attractive option for investors who are looking for a low-risk investment with medium growth and profitability potential. With its strong asset base, LARGO INC is likely to be a reliable asset that can generate steady returns for investors. More…
Summary
Investors responded negatively to Largo Inc‘s Q3 FY2023 earnings results, with the stock price moving down the same day. Total revenue for the period was USD 44.0 million, a decrease of 18.9% compared to the same quarter from the previous year. Net income for the quarter was USD -11.4 million, a significant decrease from the prior year’s -2.1 million.
This represents a decrease in profitability and suggests that the company may not be able to reach its growth targets this quarter. Investors should take these results into account before making any decisions about investing in Largo Inc.
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