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ENG Nasdaq· Englobal Corporation
Earnings report Q3 2023

ENGlobal Corporation Reports Decrease in Revenue for Q3 2023

Segments of Revenue

ENGlobal Corporation reported operating revenues of $9.5 million for the three months ended September 30, 2023, representing a decrease of 27.6% compared to the same period in 2022. The revenue for the Commercial segment decreased primarily due to the conclusion of a large project in 2022 without subsequent renewal. However, this decline was partially offset by project awards with new customers for projects completed during the third quarter of 2023. On the other hand, the Government Services segment experienced an increase in revenue primarily due to new project awards.

For the nine months ended September 30, 2023, ENGlobal Corporation's revenue increased by 1.9% to $32.4 million compared to the same period in 2022. This growth can be attributed to the completion of several projects from new customers within the Commercial segment during the 2023 period.

Strengths

Despite the decrease in revenue for the third quarter of 2023, ENGlobal Corporation demonstrated strength in securing new project awards in the Government Services segment. This indicates the company's ability to expand its customer base and generate revenue from new sources. Additionally, the completion of projects from new customers within the Commercial segment contributed to the overall revenue growth for the nine months ended September 30, 2023.

Challenges

The decline in revenue for the third quarter of 2023, primarily in the Commercial segment, highlights the challenge of project renewals and the need for consistent project flow. The conclusion of a large project in 2022 without subsequent renewal impacted the segment's revenue. ENGlobal Corporation should focus on securing long-term contracts and maintaining strong relationships with existing customers to mitigate the impact of project expirations.

Noteworthy

It is noteworthy that ENGlobal Corporation's revenue for the third quarter of 2023 experienced a significant decline compared to the same period in 2022. However, the company's ability to secure new project awards in the Government Services segment and complete projects from new customers within the Commercial segment contributed to the overall revenue growth for the nine months ended September 30, 2023.

Summary

ENGlobal Corporation reported a decrease in revenue for the third quarter of 2023, primarily driven by the conclusion of a large project in the Commercial segment without subsequent renewal. However, the company demonstrated strength in securing new project awards in the Government Services segment and experienced overall revenue growth for the nine months ended September 30, 2023. ENGlobal Corporation should focus on addressing the challenge of project renewals and maintaining consistent project flow to sustain revenue growth in the future.

Source documents

Form 10-Q  filed on Nov 13, 2023
71 pages scanned

Reference data

Company financials Q3 revenue 9.5M
Analyst estimates Q3 EPS missed by NaN%
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