ToughBuilt (TBLT) Q2 Earnings Top Estimates, Revenues Miss
ToughBuilt Industries, Inc. TBLT reported mixed results for second-quarter 2023, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. On a year-over-year basis, the adjusted net loss narrowed and revenues increased.
Despite a challenging market condition, the company's focus on expansion through strategic partnerships, product innovation and strong cost management helped it deliver solid results.
Inside the Headlines
ToughBuilt reported a net loss of 36 cents per share, which topped the Zacks Consensus Estimate of loss of 57 cents. The reported loss was narrower from the year-ago loss of $9.45 per share. The upside was backed by its continued focus on operational efficiency and strategic capital allocation.
ToughBuilt Industries, Inc. Price, Consensus and EPS Surprise
ToughBuilt Industries, Inc. price-consensus-eps-surprise-chart | ToughBuilt Industries, Inc. Quote
Total revenues of $18.9 million missed the consensus mark of $29 million by 34.7% but increased 5.5% year over year. Strong demand and recurring sales orders for metal goods and soft goods drove the bottom-line growth in the reported quarter.
Sales through Amazon.com increased 1.4% year over year to $3.61 million.
Margins Performance
Gross profit were $5.8 million, up 18.0% from $4.9 million reported in the year-ago quarter. The gross margin was up 300 basis points (bps) to 31% from the year-ago figure of 28%, primarily driven by improved product mix and select pricing adjustments.
Financials
ToughBuilt had cash balance of $2.2 million as of Jun 30, 2023, slightly down from $2.6 million at 2022-end. Net cash used in operating activities was $2.15 million for the first half of 2023, down compared with $12.89 million in the prior-year period.
In June 2023, the company raised $4.5 million through a public offering, resulting in net proceeds of $3.7 million.
Other Updates
In June 2023, TBLT expanded its footprint in the U.K. by establishing new business relationships with Howdens UK and City Electrical Factors UK (“CEF”), representing a combined 1,200 retail locations nationwide.
Also, the company partnered with La Platforme Du Batiment and Prolians to expand its distribution in European Union. These major retail groups collectively cater to more than 600,000 professional customers in France and Spain.
Zacks Rank & Recent Construction Releases
ToughBuilt currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVR, Inc. NVR reported mixed second-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line declined on a year-over-year basis, thanks to delayed housing activities and macroeconomic woes.
NVR reported earnings of $116.54 per share, which topped the consensus mark of $100.98 by 15.4%. The reported figure declined by 6% from the prior-year quarter’s figure of $123.65 per share.
PulteGroup Inc. PHM reported impressive results in second-quarter 2023. Its earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year. The upside was mainly driven by its solid operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups.
Backed by its disciplined and balanced business model, the company witnessed solid gross closings, orders and margins in the reported quarter and posted a 12-month return on equity of 32%.
D.R. Horton, Inc. DHI reported third-quarter fiscal 2023 (ended Jun 30, 2023) results, wherein earnings and revenues surpassed their respective Zacks Consensus Estimate.
Although earnings declined, revenues increased on a year-over-year basis. The company highlighted that the supply of both new and existing homes at affordable price points remains limited and that the demographics supporting housing demand remain favorable. This tailwind has helped this Arlington, TX-based homebuilder witness net sales order growth of 37% year over year in the fiscal third quarter.
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