We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Value Line Q3 Earnings Decline Y/Y on Elevated Costs, Stock Down 8%
Read MoreHide Full Article
Shares of Value Line, Inc. (VALU - Free Report) have declined 8.4% since the company reported its earnings for the quarter ended Jan. 31, 2025. This compares to the S&P 500 index’s 1.6% growth over the same time frame. Over the past month, the stock has declined 7% compared with the S&P 500’s 6.9% decrease.
See the Zacks Earnings Calendar to stay ahead of market-making news.
For the quarter ended Jan. 31, 2025, Value Line reported earnings per share (EPS) of 55 cents, down from 62 cents in the same quarter last year.
Total publishing revenues of $9 million denoted a slight decline from $9.1 million in the prior-year period. The company’s net income decreased to $5.2 million from $5.9 million, reflecting a 12.3% decline.
Revenues from investment periodicals and related publications remained largely unchanged at $6.31 million compared to $6.32 million in the prior-year period. Copyright fees, however, declined to $2.7 million from $2.8 million. Meanwhile, income from Value Line’s interest in Eulav Asset Management (EAM) rose to $4.9 million from $3.5 million, reflecting an increase of 40.7%.
Value Line, Inc. Price, Consensus and EPS Surprise
Total expenses increased 7.3% year over year to $7.4 million, primarily driven by higher advertising and promotional costs, which rose to $1 million from $0.8 million. Production and distribution expenses also increased to $1.5 million from $1.2 million, while office and administration costs rose to $1.4 million from $1.2 million.
Salaries and employee benefits, however, declined slightly to $3.6 million from $3.7 million. Income from operations for the quarter fell to $1.6 million, down from $2.2 million in the prior-year quarter, representing a 30% decrease.
Management Commentary
Value Line attributed the decline in EPS and net income to rising costs in marketing and production, as well as lower publishing revenues. Despite the cost pressures, the company emphasized its continued focus on operational efficiencies and maintaining its subscription-based business model.
Factors Influencing Results
The company’s earnings were affected by a decline in copyright fees, which tend to fluctuate based on licensing agreements and market conditions. Additionally, investment gains fell significantly to $0.7 million from $2 million in the prior-year period, reflecting less favorable market conditions for the company’s investment portfolio. The positive contribution from EAM helped offset some of the softness in core publishing revenues. The growth in EAM-related income highlights the firm’s reliance on its asset management interest as a stabilizing factor for overall financial performance.
Outlook
Management noted that macroeconomic uncertainties and evolving market dynamics could continue to impact subscription demand and copyright-related revenue streams. Value Line intends to focus on digital content expansion and client engagement strategies to sustain long-term growth.
Other Developments
During the quarter, the company repurchased 2,110 shares of its common stock at an average price of $45.25 per share. As of Jan. 31, 2025, the company had $0.9 million remaining under its current repurchase authorization.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Value Line Q3 Earnings Decline Y/Y on Elevated Costs, Stock Down 8%
Shares of Value Line, Inc. (VALU - Free Report) have declined 8.4% since the company reported its earnings for the quarter ended Jan. 31, 2025. This compares to the S&P 500 index’s 1.6% growth over the same time frame. Over the past month, the stock has declined 7% compared with the S&P 500’s 6.9% decrease.
See the Zacks Earnings Calendar to stay ahead of market-making news.
For the quarter ended Jan. 31, 2025, Value Line reported earnings per share (EPS) of 55 cents, down from 62 cents in the same quarter last year.
Total publishing revenues of $9 million denoted a slight decline from $9.1 million in the prior-year period. The company’s net income decreased to $5.2 million from $5.9 million, reflecting a 12.3% decline.
Revenues from investment periodicals and related publications remained largely unchanged at $6.31 million compared to $6.32 million in the prior-year period. Copyright fees, however, declined to $2.7 million from $2.8 million. Meanwhile, income from Value Line’s interest in Eulav Asset Management (EAM) rose to $4.9 million from $3.5 million, reflecting an increase of 40.7%.
Value Line, Inc. Price, Consensus and EPS Surprise
Value Line, Inc. price-consensus-eps-surprise-chart | Value Line, Inc. Quote
Operating Metrics
Total expenses increased 7.3% year over year to $7.4 million, primarily driven by higher advertising and promotional costs, which rose to $1 million from $0.8 million. Production and distribution expenses also increased to $1.5 million from $1.2 million, while office and administration costs rose to $1.4 million from $1.2 million.
Salaries and employee benefits, however, declined slightly to $3.6 million from $3.7 million. Income from operations for the quarter fell to $1.6 million, down from $2.2 million in the prior-year quarter, representing a 30% decrease.
Management Commentary
Value Line attributed the decline in EPS and net income to rising costs in marketing and production, as well as lower publishing revenues. Despite the cost pressures, the company emphasized its continued focus on operational efficiencies and maintaining its subscription-based business model.
Factors Influencing Results
The company’s earnings were affected by a decline in copyright fees, which tend to fluctuate based on licensing agreements and market conditions. Additionally, investment gains fell significantly to $0.7 million from $2 million in the prior-year period, reflecting less favorable market conditions for the company’s investment portfolio. The positive contribution from EAM helped offset some of the softness in core publishing revenues. The growth in EAM-related income highlights the firm’s reliance on its asset management interest as a stabilizing factor for overall financial performance.
Outlook
Management noted that macroeconomic uncertainties and evolving market dynamics could continue to impact subscription demand and copyright-related revenue streams. Value Line intends to focus on digital content expansion and client engagement strategies to sustain long-term growth.
Other Developments
During the quarter, the company repurchased 2,110 shares of its common stock at an average price of $45.25 per share. As of Jan. 31, 2025, the company had $0.9 million remaining under its current repurchase authorization.