Eastern Co. Reports 67% Q1 Net Income Drop, Improved Cash Flow
EML sits 27% above its 52-week low of $17.61.
Summary
Eastern Co. reported a substantial 67% decrease in Q1 net income and a 60% drop in operating profit, but showed a significant improvement in cash generated from operations.
Key Events · Earnings and Guidance · EML
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Q1 Net Income Plummets
Net income from continuing operations decreased 67% to $0.64 million from $1.91 million year-over-year.
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Operating Profit Declines
Operating profit fell 60% to $1.32 million from $3.23 million in the prior year's quarter.
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Cash Flow from Operations Improves
Cash generated from operations significantly improved to $3.5 million, compared to a use of $1.9 million in the same period last year.
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Strong Liquidity and Debt Compliance
The company has $67 million available on its $100 million revolving credit facility and is in compliance with all loan covenants.
Analysis · EML · Manufacturing
This quarterly report details a significant year-over-year decline in Q1 net income and operating profit, which was previously announced. However, the company demonstrated a strong turnaround in cash flow from operations, moving from a deficit to a surplus. The company maintains solid liquidity with $67 million available on its credit line and remains in compliance with debt covenants.
At the time of this filing, EML was trading at $22.32 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $134.7M. The 52-week trading range was $17.61 to $26.77. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.