Yahoo Finance iPower (IPW) Q3 Earnings & Revenues Top Estimates, Up Y/Y
iPower Inc. IPW posted third-quarter fiscal 2024 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Also, both metrics improved year over year.
The company witnessed robust performance during the quarter, registering double-digit revenue growth, gross margin expansion and improved operating leverage. It continues to drive savings in selling and performance operations, benefiting from a healthier supply-chain environment and reduced inventory levels.
iPower emphasizes revenue diversification through initiatives like the super suite business and expanding its online presence with platforms like TikTok Shop and Tmall.
iPower Inc. Price, Consensus and EPS Surprise
iPower Inc. price-consensus-eps-surprise-chart | iPower Inc. Quote
Q3 Details
iPower, a tech and data-driven online retailer and supplier of consumer home, pet and garden products, reported adjusted earnings of 5 cents per share, which fared better than the Zacks Consensus Estimate of a loss of 6 cents. Also, the bottom line improved sharply from adjusted loss of 5 cents reported in the year-ago quarter.
Net revenues of $23.3 million surpassed the Zacks Consensus Estimate of $19 million. The metric increased significantly by 15% from $20.2 million reported in the prior-year quarter. The increase in revenues was primarily driven by higher product sales to its largest channel partner, alongside growth in its SuperSuite supply-chain offerings.
Gross profit of $10.9 million increased 41% compared with $7.8 million in the prior-year quarter. Gross margin of 47% expanded 850 basis points (bps) year over year. The significant increase in gross margin was driven by better pricing through key supplier negotiations and a favorable product mix.
Total operating expenses of $9.3 million declined 3.1% year over year. The downtick stemmed from lower selling and fulfillment expenses resulting from vendor credits. As a percentage of revenues, operating expenses improved 740 bps to 40.1% compared with 47.5% in the year-ago period.
Other Financial Aspects
IPW ended the quarter with cash and cash equivalents of $2.7 million and stockholders’ equity of $19 million.
As of Mar 31, 2024, total debt was $6 million compared with $11.8 million as of Jun 30, 2023. This decline was attributable to the continued efforts to pay down debt, which led to a substantial reduction of 59% in net debt to $3.3 million
Wrapping Up
Management anticipates concluding fiscal 2024 on an upbeat note, bolstered by the stellar demand from largest channel partner, an improvement in super suite division and expansion into new e-commerce platforms like Tmall.
This Zacks Rank #3 (Hold) company’s shares have rallied 180% in the past month compared with the industry’s growth of 10.7%.
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3 Picks You Can’t Miss
We have highlighted three better-ranked stocks in the broader sector, namely Hasbro Inc. HAS, Crocs, Inc. CROX and Gildan Activewear Inc. GIL.
Hasbro, a leading operator of toy and games company, currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 17.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HAS’ current fiscal-year earnings indicates growth of 45.4% from the year-ago reported figures.
Crocs develops and manufactures lifestyle footwear and accessories. It currently has a Zacks Rank #2 (Buy). CROX has a trailing four-quarter earnings surprise of 17.1%, on average.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and earnings suggests growth of 4.4% and 5.2%, respectively, from the year-earlier levels.
Gildan Activewear, a distributer and manufacturer of activewear products, currently carries a Zacks Rank #2. GIL’s last quarter earnings surprise shows growth of 5.6%.
The Zacks Consensus Estimate for Gildan Activewear’s current fiscal-year sales and earnings suggests growth of 2.1% and 14.4%, respectively, from the prior-year reported numbers.
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iPower Inc. (IPW) : Free Stock Analysis Report
