Espey Mfg. & Electronics Corp. reports third quarter results

Rhea-AI Summary

Espey Mfg. & Electronics Corp. (NYSE American: ESP) reported their third-quarter results for fiscal year 2024. Net sales for Q3 2024 were $8.25 million, down from $9.81 million in Q3 2023. However, net income rose to $1.03 million, or $0.40 per diluted share, compared to $0.87 million, or $0.35 per diluted share, in the same period last year. For the first nine months of fiscal year 2024, net sales were $27.1 million, almost flat compared to $27.2 million in the same period of fiscal year 2023. Net income for this period increased to $3.92 million, or $1.56 per diluted share, from $2.78 million, or $1.13 per diluted share, last year. The backlog grew to $84.2 million, up from $82.1 million, despite new orders decreasing to $27.8 million from $32.6 million. CEO David O'Neil noted soft Q3 sales but highlighted improvements in gross profit and investment income, along with strong new sales orders and backlog. The company specializes in military and industrial power supplies/transformers.

Positive

• Net income for Q3 2024 increased to $1.03 million from $0.87 million in Q3 2023.
• Earnings per diluted share for Q3 2024 improved to $0.40 from $0.35 in Q3 2023.
• Net income for the first nine months of fiscal year 2024 rose to $3.92 million from $2.78 million in the same period of fiscal year 2023.
• Earnings per diluted share for the first nine months of fiscal year 2024 increased to $1.56 from $1.13 last year.
• The backlog as of March 31, 2024, increased to $84.2 million from $82.1 million last year.
• Gross profit and investment income showed improvement.
• Effective control over fixed costs contributed positively to bottom-line results.

Negative

• Net sales for Q3 2024 declined to $8.25 million from $9.81 million in Q3 2023.
• Net sales for the first nine months of fiscal year 2024 were flat at $27.1 million compared to $27.2 million in the same period of fiscal year 2023.
• New orders for the first nine months of fiscal year 2024 decreased to $27.8 million from $32.6 million last year.

News Market Reaction

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On the day this news was published, ESP declined 6.16%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SARATOGA SPRINGS, N.Y., May 13, 2024 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces results for the third quarter and the first nine months of fiscal year 2024.

Net sales for the third quarter of fiscal year 2024, January 1 to March 31, 2024, were $8,254,653 compared with last year's third quarter net sales of $9,809,616. Net income for the quarter was $1,031,930, $0.40 per diluted share, as compared to net income of $867,288, $0.35 per diluted share for the same quarter last year.

For the first nine months of fiscal year 2024, July 1 to March 31, 2024, net sales were $27.1 million, compared with $27.2 million for the first nine months of fiscal year 2023. Net income for the period was $3,921,844, $1.56 per diluted share, compared with net income of $2,781,596, $1.13 per diluted share, for the same period last year.

The backlog for the Company was $84.2 million at March 31, 2024, compared with last year's backlog of $82.1 million at March 31, 2023. New orders in the first nine months of fiscal year 2024 were approximately $27.8 million, compared with new orders in the first nine months of fiscal year 2023 of $32.6 million.

Mr. David O’Neil, President and CEO, commented,

With another quarter behind us, we are on track for an excellent year. Sales for the quarter proved a bit soft, comparative to last year, however on par with internal expectations. Gross profit, investment income, and control over fixed costs continued to deliver improvement to bottom-line results. Our larger engineering development programs remain financially healthy and in general our development programs have had less of a dilutive effect on gross profit reported when compared to prior years. New sales orders and our sales backlog remain strong. We are currently working on several large opportunities which could potentially become orders in the near future.

Espey's primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the internet at www.espey.com.

For further information, contact Ms. Katrina Sparano at invest@espey.com.

This press release may contain certain statements that are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

FAQ

What were Espey Mfg. & Electronics Corp.'s net sales for Q3 2024?

Espey Mfg. & Electronics Corp.'s net sales for Q3 2024 were $8.25 million, compared to $9.81 million in Q3 2023.

How much was Espey Mfg. & Electronics Corp.'s net income for Q3 2024?

Net income for Q3 2024 was $1.03 million, or $0.40 per diluted share, up from $0.87 million, or $0.35 per diluted share, in Q3 2023.

What were Espey Mfg. & Electronics Corp.'s net sales for the first nine months of fiscal year 2024?

Net sales for the first nine months of fiscal year 2024 were $27.1 million, compared to $27.2 million for the same period in fiscal year 2023.

How much did Espey Mfg. & Electronics Corp.'s net income increase in the first nine months of fiscal year 2024?

Net income for the first nine months of fiscal year 2024 increased to $3.92 million from $2.78 million in the same period of fiscal year 2023.

What is the current backlog for Espey Mfg. & Electronics Corp. as of March 31, 2024?

The current backlog for Espey Mfg. & Electronics Corp. as of March 31, 2024, is $84.2 million, up from $82.1 million last year.

What were the new orders for Espey Mfg. & Electronics Corp. in the first nine months of fiscal year 2024?

New orders for the first nine months of fiscal year 2024 were approximately $27.8 million, compared to $32.6 million in the same period of fiscal year 2023.