For the third quarter of 2024, Omega Flex, Inc. OFLX reported an earnings per share (EPS) of 46 cents, a lower from 55 cents in the identical interval in 2023.
Income for the quarter totaled $24.9 million, representing a decline of 9.5% from $27.5 million within the prior-year quarter.
Omega Flex’s income contraction within the third quarter was primarily pushed by decreased unit volumes as market demand softened. Moreover, the housing sector, which considerably influences the demand for Omega Flex’s piping merchandise, skilled a downturn. The cumulative revenues for the 9 months ended Sept. 30, 2024, totaled $74.7 million, a ten.3% lower from $83.3 million within the comparable interval of 2023.
Omega Flex, Inc. Worth, Consensus and EPS Shock
Omega Flex, Inc. price-consensus-eps-surprise-chart | Omega Flex, Inc. Quote
To mitigate the influence of decrease gross sales, Omega Flex leveraged cost-saving measures, together with a discount in uncooked materials prices, which partially offset the gross sales decline. Nevertheless, the corporate confronted greater fastened overhead bills resulting from newly leased amenities, which elevated its price base. The stability between price administration and decreased manufacturing capability proved difficult, as decrease manufacturing volumes weakened the associated fee absorption of manufacturing unit labor and overhead, considerably impacting margins.
Internet revenue for the third quarter of 2024 was $4.6 million, down 17.2% in comparison with $5.6 million within the third quarter of 2023. For the nine-month interval, Omega Flex’s internet revenue was $13.3 million, a 16% discount from $15.9 million within the prior yr. The lower in profitability is attributed to decrease gross sales and decreased manufacturing effectivity, which resulted in a weaker absorption of manufacturing unit labor and overhead prices.
For the 9 months ended Sept. 30, 2024, the EPS was $1.32 in comparison with $1.57 for a similar interval in 2023, reflecting a lower.
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