Hurco Companies, Inc. HURC faced turbulent waters with a loss per share of $1.47 in Q3 of fiscal 2024, a stark contrast to last year’s 4 cents per share earnings.
In the third quarter, Hurco’s revenues plummeted to $42.7 million, marking a 19.8% drop from the previous year.
The disappointing performance was echoed across all geographic segments, weighing down the overall sales figures.
Despite this, the company’s stock managed to eke out a 3.1% gain in the latest trading sessions.
Global Operations: A Closer Look
Hurco conducts business in three key regions – the Americas, Europe, and Asia Pacific.
In the Americas, sales for the quarter totaled $15.4 million, a 15.8% decline from the previous year due to reduced shipments of certain machines.
Europe witnessed a sales drop to $24.1 million, with Germany, Italy, and the UK experiencing reduced machine shipments.
Meanwhile, Asia Pacific reported sales of $3.2 million, down 15.2% driven by decreased shipments in specific countries offset by increased orders elsewhere.
HURC Sees Surge in Orders
Order intake in Q3 2024 stood at $52.8 million, a 25.5% increase from the previous year.
The Americas saw orders of $17.6 million, Europe $28.3 million, and Asia Pacific $6.8 million, reflecting a promising trend of increased customer demand.
Analyzing Hurco’s Price, Consensus, and EPS
Hurco Companies, Inc. price-consensus-eps-surprise-chart | Hurco Companies, Inc. Quote
HURC’s Profitability Under Pressure
Hurco’s gross profit dipped 41.7% to $7.8 million in Q3 with a contraction in gross margin to 18.4%.
Decoding Operating Expenses
Selling, general, and administrative expenses shrank 16.6% year-over-year to $10.4 million in Q3.
HURC’s Financial Landscape
Operating loss for the quarter stood at $2.5 million, a stark contrast to the $1 million operating profit from the previous year.
Net loss for the quarter ballooned to $9.6 million, a significant drop from the $0.3 million net income in Q3 of the fiscal year before.
Stability in Liquidity
Hurco closed Q3 of fiscal 2024 with $36.1 million in cash and equivalents, with the absence of any outstanding debt.
Cash used for operating activities was $1.3 million compared to $16.2 million a year earlier.
Final Thoughts
Despite challenges, Hurco shows resilience in the face of adversity, exemplified by an uptick in order volumes amidst declining revenues and margins.
As the company charts its course ahead, the positive momentum in order performance provides a glimmer of hope for investors amidst the stormy seas.
