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Hurco Companies, Inc. (HURC - Free Report) delivered a loss per share of 61 cents in the second quarter of fiscal 2024 against the year-over-year earnings per share of 6 cents.
Revenues in Detail
Hurco registered revenues of $45.2 million in the fiscal second quarter, down 16.1% year over year.
Dismal performances by all the geographic regions dampened the topline.
Geographic Results
Hurco operates in three geographic regions — the Americas, Europe and Asia Pacific.
Sales in the Americas for the second quarter of fiscal 2024 were $16.9 million, down 7.5% year over year. This decline resulted primarily due to decreased shipments of Hurco machines. The downtick in sales of Hurco machines was primarily attributable to decreased shipments of VM machines, partially offset by increased sales of higher-performing VMX and 5-axis machines.
Sales in Europe were $22.7 million, down 24.2% year over year. The year-over-year decline in European sales was primarily attributable to a decreased volume of shipments of Hurco and Takumi machines in Germany, the UK and Italy, as well as a decreased volume of shipments of electro-mechanical components and accessories manufactured by Hurco’s wholly-owned subsidiary, LCM, partially offset by an increased volume of shipments of Hurco machines in France.
Sales in Asia Pacific were $5.5 million, down 0.01% year over year. The increased sales of higher-performance VMX and 5-axis Hurco and Takumi machines in India in the quarter were almost fully offset by reductions in shipment of Hurco and Takumi machines in China and Southeast Asia.
Order Details
Hurco’s orders in the second quarter of fiscal 2024 were $44.2 million, down 26.6% year over year.
For the quarter under review, orders in the Americas were $17.1 million, down 23.3% year over year. The decline in orders was primarily due to decreased customer demand for Hurco VM machines, partially offset by increased orders of higher-performing VMX and 5-axis machines.
Orders in Europe were $23.9 million, down 27.6% year over year. The fall in orders primarily resulted from decreased customer demand for Hurco and Takumi machines in Germany, the UK and Italy, as well as decreased demand for electro-mechanical components and accessories manufactured by LCM, partially offset by increased customer demand for Hurco machines in France.
Orders in Asia Pacific were $3.3 million, down 34.7% year over year. The decline resulted from decreased customer demand for Hurco and Takumi machines in China, India and Southeast Asia.
Hurco Companies, Inc. Price, Consensus and EPS Surprise
In the quarter under review, Hurco’s gross profit decreased 36.3% to $8 million. The gross margin contracted 563 basis points (bps) to 17.8%.
Operating Expenses Analysis
In the fiscal second quarter, selling, general and administrative expenses decreased 1.1% to $11.5 million.
Profitability
In the reported quarter, Hurco’s operating loss totaled $3.4 million, against the year-ago quarter’s operating profit of $0.9 million.
In the fiscal second quarter, net loss attributable to Hurco was $3.9 million, against the net income of $0.4 million in the prior-year quarter.
Liquidity & Debt Management
Hurco exited second-quarter fiscal 2024 with cash and cash equivalents of $37.5 million compared with $37.9 million at the fiscal first-quarter end.
The company had no outstanding debt at the fiscal second-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter fiscal 2024 was $1.9 million compared with $0.9 million a year ago.
Our Take
Hurco exited the second quarter of fiscal 2024 with disappointing top-line and bottom-line results. The company’s dismal geographic results and declining order performances raise apprehension. The gross margin contraction also does not bode well.
On a positive note, increased sales of VMX and 5-axis machines and increased volume of shipments of Hurco machines in France during the quarter were encouraging.
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Hurco (HURC) Q2 Earnings Decline Y/Y, Gross Margin Contracts
Hurco Companies, Inc. (HURC - Free Report) delivered a loss per share of 61 cents in the second quarter of fiscal 2024 against the year-over-year earnings per share of 6 cents.
Revenues in Detail
Hurco registered revenues of $45.2 million in the fiscal second quarter, down 16.1% year over year.
Dismal performances by all the geographic regions dampened the topline.
Geographic Results
Hurco operates in three geographic regions — the Americas, Europe and Asia Pacific.
Sales in the Americas for the second quarter of fiscal 2024 were $16.9 million, down 7.5% year over year. This decline resulted primarily due to decreased shipments of Hurco machines. The downtick in sales of Hurco machines was primarily attributable to decreased shipments of VM machines, partially offset by increased sales of higher-performing VMX and 5-axis machines.
Sales in Europe were $22.7 million, down 24.2% year over year. The year-over-year decline in European sales was primarily attributable to a decreased volume of shipments of Hurco and Takumi machines in Germany, the UK and Italy, as well as a decreased volume of shipments of electro-mechanical components and accessories manufactured by Hurco’s wholly-owned subsidiary, LCM, partially offset by an increased volume of shipments of Hurco machines in France.
Sales in Asia Pacific were $5.5 million, down 0.01% year over year. The increased sales of higher-performance VMX and 5-axis Hurco and Takumi machines in India in the quarter were almost fully offset by reductions in shipment of Hurco and Takumi machines in China and Southeast Asia.
Order Details
Hurco’s orders in the second quarter of fiscal 2024 were $44.2 million, down 26.6% year over year.
For the quarter under review, orders in the Americas were $17.1 million, down 23.3% year over year. The decline in orders was primarily due to decreased customer demand for Hurco VM machines, partially offset by increased orders of higher-performing VMX and 5-axis machines.
Orders in Europe were $23.9 million, down 27.6% year over year. The fall in orders primarily resulted from decreased customer demand for Hurco and Takumi machines in Germany, the UK and Italy, as well as decreased demand for electro-mechanical components and accessories manufactured by LCM, partially offset by increased customer demand for Hurco machines in France.
Orders in Asia Pacific were $3.3 million, down 34.7% year over year. The decline resulted from decreased customer demand for Hurco and Takumi machines in China, India and Southeast Asia.
Hurco Companies, Inc. Price, Consensus and EPS Surprise
Hurco Companies, Inc. price-consensus-eps-surprise-chart | Hurco Companies, Inc. Quote
Hurco Gross Margin
In the quarter under review, Hurco’s gross profit decreased 36.3% to $8 million. The gross margin contracted 563 basis points (bps) to 17.8%.
Operating Expenses Analysis
In the fiscal second quarter, selling, general and administrative expenses decreased 1.1% to $11.5 million.
Profitability
In the reported quarter, Hurco’s operating loss totaled $3.4 million, against the year-ago quarter’s operating profit of $0.9 million.
In the fiscal second quarter, net loss attributable to Hurco was $3.9 million, against the net income of $0.4 million in the prior-year quarter.
Liquidity & Debt Management
Hurco exited second-quarter fiscal 2024 with cash and cash equivalents of $37.5 million compared with $37.9 million at the fiscal first-quarter end.
The company had no outstanding debt at the fiscal second-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter fiscal 2024 was $1.9 million compared with $0.9 million a year ago.
Our Take
Hurco exited the second quarter of fiscal 2024 with disappointing top-line and bottom-line results. The company’s dismal geographic results and declining order performances raise apprehension. The gross margin contraction also does not bode well.
On a positive note, increased sales of VMX and 5-axis machines and increased volume of shipments of Hurco machines in France during the quarter were encouraging.