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AGTI NYSE· Agiliti Inc.
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AGTI NYSE· Agiliti Inc.
Earnings report Q3 2023

AGTI Reports Increase in Revenue for Latest Quarter

Segments of Revenue

AGTI reported revenue of $291.6 million for the three months ended September 30, 2023, compared to $271.2 million for the same period in 2022. This represents a year-over-year increase of $20.4 million or 7.5%.

Strengths

AGTI's increase in revenue can be attributed to a lower mix of peak need rental placements post-COVID-19, as well as the renewal pricing and scope of the government contract. These factors have positively impacted the company's overall performance and contributed to the growth in revenue.

Challenges

Despite the increase in revenue, AGTI experienced a decrease in gross margin as a percentage of revenue. Gross margin for the nine months ended September 30, 2023, was $305.5 million, or 34.6% of revenue, compared to $323.4 million, or 38.5% of revenue, for the same period in 2022. This decrease of $17.8 million or 5.5% can be attributed to a lower mix of peak need rental placements and the renewal pricing and scope of the government contract.

Noteworthy

AGTI's selling, general, and administrative expense increased by $3.1 million, or 1.2%, to $257.4 million for the nine months ended September 30, 2023, compared to the same period in 2022. This increase in expense as a percentage of revenue was primarily driven by factors not specified in the report.

Summary

AGTI reported a positive performance in the latest quarter, with an increase in revenue of 7.5% compared to the same period last year. The company's revenue growth can be attributed to a lower mix of peak need rental placements post-COVID-19 and the renewal pricing and scope of the government contract. However, AGTI faced challenges in maintaining gross margin as a percentage of revenue, which decreased by 5.5% due to the aforementioned factors. The increase in selling, general, and administrative expense also impacted the company's financial performance. Overall, AGTI's revenue growth demonstrates its ability to adapt to changing market conditions and secure government contracts, but it should focus on improving gross margin and managing expenses to enhance profitability.

Source documents

Form 10-Q  filed on Nov 07, 2023
12 pages scanned

Reference data

Company financials Q3 revenue 292M
Analyst estimates Q3 EPS beat by 20.18%
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