Demo
EDUC Nasdaq· Educational Development Corporation
FundamentalsNews digest Peer analysis
Login
EDUC Nasdaq· Educational Development Corporation
Earnings report Q4 2023

Educational Development Corporation Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

Educational Development Corporation (EDUC) reported net revenues of $16.94 million for the three months ended November 30, 2023, compared to $30.27 million in the same period last year. This represents a significant decrease of 44% year-over-year. For the nine months ended November 30, 2023, net revenues were $42.06 million, down from $72.85 million in the prior year, reflecting a decline of 42%.

Strengths

Despite the decline in revenue, EDUC's gross margin remained strong at $11.14 million for the latest quarter. This indicates that the company was able to maintain profitability despite the decrease in sales. Additionally, management comments suggest that the decrease in revenue was primarily due to lower gross sales and discounts, which were partially offset by transportation revenue.

Challenges

The main weakness for EDUC in the latest quarter was the significant decline in net revenues. This decline can be attributed to lower gross sales and discounts, which impacted the company's overall performance. The decrease in sales may be a result of various factors, such as changes in consumer behavior, increased competition, or supply chain disruptions.

Noteworthy

It is worth noting that EDUC's transportation revenue increased from $2.19 million in the same quarter last year to $2.09 million in the current quarter. This indicates that the company was able to generate additional revenue from transportation services, which partially offset the decline in gross sales and discounts.

Summary

Educational Development Corporation (EDUC) reported a significant decrease in net revenues for the latest quarter, with a decline of 44% compared to the same period last year. Despite this decline, the company was able to maintain a strong gross margin of $11.14 million. The decrease in revenue can be attributed to lower gross sales and discounts, which were partially offset by an increase in transportation revenue. The decline in sales may pose a challenge for EDUC, and it will be important for the company to address the factors contributing to this decline and implement strategies to drive future growth.

Source documents

Form 10-Q  filed on Jan 11, 2024
117 pages scanned

Reference data

Company financials Q4 revenue 16.9M
Analyst estimates Q4 EPS missed by NaN%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.