Shares of AstroNova, Inc. ALOT have misplaced 5.8% because the firm reported its earnings for the quarter ended Nov. 2, 2024. This compares to the S&P 500 index’s -0.1% change over the identical timeframe. Over the previous month, the inventory moved 1.1% in contrast with the S&P 500’s 3% change.
The corporate reported a third-quarter fiscal 2025 internet revenue of 6 cents per share on a non-GAAP foundation in contrast with 37 cents per share final 12 months.
AstroNova reported internet revenues of $40.4 million for third-quarter fiscal 2025, up 7.7% from $37.5 million in the identical quarter final 12 months. Nevertheless, GAAP internet revenue dropped sharply to $0.2 million from $2.8 million a 12 months in the past, reflecting a 91.3% decline. On a non-GAAP foundation, internet revenue was $0.5 million in contrast with $2.8 million final 12 months.
Gross margins contracted considerably, with GAAP gross margin declining to 33.9%, down from 39.4% in third-quarter fiscal 2024, as a consequence of increased working prices and an unfavorable product combine.
Working margins additionally declined, with the GAAP working margin declining to three.1%, a steep drop from 12.3% within the prior-year quarter. Adjusted EBITDA fell 43%, from $5.7 million to $3.2 million, highlighting profitability challenges regardless of top-line progress.
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AstroNova, Inc. Value, Consensus and EPS Shock
AstroNova, Inc. price-consensus-eps-surprise-chart | AstroNova, Inc. Quote
Section Efficiency and Enterprise Metrics
Product Identification Section (PI):
Revenues within the PI section had been $26.3 million, barely down from $26.5 million a 12 months in the past. This was as a consequence of delayed product launches and weaker European gross sales. The section’s working revenue dropped considerably to $1.9 million (7.1% margin) from $4.8 million (18.1% margin) in third-quarter fiscal 2024. The lower was as a consequence of acquisition-related prices, lowered gross sales volumes, and better bills tied to the MTEX integration.
Check & Measurement Section (T&M):
Revenues within the T&M section grew 28.2% 12 months over 12 months to $14.1 million, pushed by robust efficiency within the Aerospace product line regardless of non permanent setbacks from a two-month Boeing strike. Section working revenue elevated to $3.3 million (23% margin) from $2.6 million (23.2% margin) a 12 months in the past.
Bookings for the quarter had been $37.6 million, up from $35.5 million within the prior 12 months, whereas backlog decreased to $27.1 million from $31.2 million.
Administration Commentary
CEO Greg Woods acknowledged disappointing profitability within the quarter, citing challenges associated to the MTEX NS acquisition and delays in a significant inkjet printer order. The MTEX integration has confirmed extra resource-intensive than anticipated, with MTEX posting an working lack of $1.1 million on $1.7 million in revenues. AstroNova has reorganized MTEX’s reporting construction and launched a company-wide value discount and product rationalization initiative, which is predicted to proceed by means of mid-2025.
Regardless of these setbacks, administration stays optimistic about MTEX’s modern inkjet printing expertise and plans to combine its options throughout AstroNova’s broader product portfolio to boost buyer worth and competitiveness.
Elements Influencing Outcomes
The numerous margin contraction stemmed from elevated prices associated to the MTEX acquisition, a weaker product combine, and delays in product launches. Moreover, working bills rose to $12.5 million from $10.2 million a 12 months in the past, reflecting increased promoting, advertising, and administrative prices. The T&M section’s efficiency was partially hampered by the Boeing strike, though the resumption of shipments post-strike is predicted to assist future income progress.
Steerage
AstroNova has suspended its fiscal 2025 and 2026 monetary steering, reflecting uncertainties tied to the prolonged MTEX integration course of. The corporate plans to supply long-term monetary targets throughout its fiscal 2025 full-year earnings launch in March 2025.
Different Developments
AstroNova accomplished the MTEX NS acquisition in Could 2024, incurring $19.1 million in acquisition-related prices. To handle the mixing challenges, the corporate has applied a structural realignment inside MTEX and initiated a cost-saving program throughout the group. This effort goals to streamline operations and improve product choices, although the advantages are anticipated to materialize steadily over the subsequent a number of quarters.
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