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Taylor Devices Q2 Earnings Fall 39% Y/Y, Shares Drop 2%

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Shares of Taylor Devices, Inc. (TAYD - Free Report) have declined 1.8% since the company reported its earnings for the quarter ended Nov. 30, 2024. This compares to the S&P 500 index’s 0.6% growth over the same time frame. Over the past month, the stock has declined 23.7% compared with the S&P 500’s 1.4% decline.

For the fiscal second quarter, earnings per share (EPS) were 34 cents, down from 56 cents in the prior-year period.

Taylor Devices reported sales of $8.6 million, reflecting an 17% decrease from $10.3 million in the prior-year quarter. Net earnings also declined, coming in at $1.1 million compared to $2 million a year earlier, a 47% drop. 

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Taylor Devices, Inc. Price, Consensus and EPS Surprise

Taylor Devices, Inc. Price, Consensus and EPS Surprise

Taylor Devices, Inc. price-consensus-eps-surprise-chart | Taylor Devices, Inc. Quote

TAYD’s Other Key Business Metrics

CEO Tim Sopko highlighted the company’s firm order backlog, which increased to $34.5 million from $33.1 million at the beginning of the fiscal year, despite a high sales outflow in the first half. Sopko noted that the $20.2 million in first-half sales marked the second-highest in company history, slightly trailing last year’s record of $20.3 million. The company’s profit margins for the first half remain stable, with net earnings as a percentage of sales at 18.5%, comparable to last year’s 18.9%.

Management Commentary for TAYD

Management reiterated its comitment to pursuing growth opportunities in its three key markets: Aerospace/Defense, Structural and Industrial. Sopko emphasized that the company’s custom-engineered products are critical to its customers and expressed optimism about sustaining profitable growth in these markets. Despite the quarterly decline in sales and net earnings, the CEO's commentary pointed to a strong operational pipeline and strategic focus on core markets.

Factors Influencing Headline Numbers

The decline in quarterly sales and net earnings was primarily attributed to reduced sales volume compared to the prior year. While first-half results showed minimal deviation in sales, the reduced revenues for the quarter negatively impacted profitability. Taylor Devices continues to operate in a competitive and specialized market where sales volumes can significantly influence quarterly performance metrics.


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