Taylor Devices Shows Resilience Amid Earnings Setback
Shares of Taylor Devices, Inc. (TAYD) have increased by 1.9% since the company announced its earnings for the quarter ended February 28, 2025. In contrast, the S&P 500 index experienced a 1.1% drop during the same period. Over the last month, Taylor’s stock rose by 4.8%, while the S&P 500 has declined by 3.9%.
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Financial Performance Overview
In the fiscal third quarter ending February 28, 2025, Taylor Devices reported earnings per share (EPS) of 64 cents, down from 82 cents in the same quarter last year. The company’s sales reached $10.6 million, representing a 13.8% decrease from $12.3 million in the previous year. Additionally, net earnings fell by 25.8% to $2 million, compared to $2.7 million in the prior-year quarter.
Maintaining Strong Margins
Despite the year-over-year declines in sales and earnings, Taylor Devices managed to retain favorable gross margins. CEO Tim Sopko attributed this achievement to the company’s continuous improvement initiatives and strong execution amidst a shifting product mix. Although this year’s sales did not match last year’s record levels, Sopko highlighted that the fiscal 2025 revenue for the first nine months surpassed the company’s second-highest figures from fiscal 2023, indicating some resilience within the business.
Strategic Insights from Management
In discussing the earnings decline, CEO Tim Sopko pointed to existing macroeconomic challenges, including high interest rates and the impact of the U.S. Government’s Continuing Resolution, which may have affected order timing and customer budgets. However, Sopko was optimistic about Taylor Devices’ strategy of market diversification, which coupled with stable end markets, contributes to positive outlooks for future orders.
The firm order backlog rose to $33.3 million as of February 2025, a notable increase from $30.2 million a year earlier, suggesting healthy future demand. Sopko reaffirmed the company’s commitment to growth through investments in talent, research and development, and facility enhancements.
Market Perspectives
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Taylor Devices, Inc. (TAYD): Comprehensive Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
