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KEQU Nasdaq· Kewaunee Scientific Corporation
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KEQU Nasdaq· Kewaunee Scientific Corporation
Earnings report Q4 2023

KEQU Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

KEQU reported net sales of $50.44 million for the latest quarter, representing a decrease from the net sales of $54.56 million in the same period last year. Domestic sales accounted for $34.19 million, down 10.0% from the previous year's domestic sales of $37.99 million. The decrease in domestic sales can be attributed to the company's decision to no longer sell directly to end users, resulting in a reduction of installation revenue.

Strengths

Despite the decrease in revenue, KEQU managed to maintain a gross profit of $13.47 million, compared to $8.70 million in the same quarter last year. This improvement in gross profit can be attributed to effective cost management and a reduction in the cost of products sold. The company's operating profit also increased significantly to $5.11 million, compared to $0.76 million in the previous year's quarter. Management's focus on controlling operating expenses has contributed to this positive performance.

Challenges

The decrease in net sales indicates a decline in overall demand for KEQU's products. The decision to no longer sell directly to end users has impacted the company's domestic sales, highlighting a potential weakness in their sales strategy. It will be crucial for KEQU to explore alternative sales channels and strategies to mitigate the negative impact on revenue.

Noteworthy

KEQU's net earnings for the quarter were $2.83 million, a significant improvement from a net loss of $0.11 million in the same period last year. This positive turnaround can be attributed to the increase in gross profit and effective cost management. Additionally, the company reported comprehensive earnings of $2.48 million, compared to a comprehensive loss of $0.48 million in the previous year's quarter.

Summary

KEQU reported a decrease in revenue for the latest quarter, primarily driven by a decline in domestic sales due to the company's decision to no longer sell directly to end users. However, the company demonstrated strengths in maintaining a healthy gross profit and significantly improving operating profit. KEQU's focus on cost management and effective expense control has contributed to their positive financial performance. Going forward, the company will need to address the challenges in their sales strategy and explore alternative channels to drive revenue growth.

Source documents

Form 10-Q  filed on Dec 08, 2023
119 pages scanned

Reference data

Company financials Q4 revenue 46.8M
Analyst estimates Q4 EPS missed by NaN%
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