Stocks Update: May 18, 2023

Welcome back to my daily blog post about my personal stock portfolio. In today’s update, we’ll be taking a look at the latest financial results and developments from a few companies that I own: United Maritime, SigmaTron International, Brady Corporation, Lightspeed, and UCLOUDLINK GROUP INC

United Maritime Corporation declares Q1 2023 Results with adjusted net loss of $3.7 million

Founded in 2017, United Maritime Corporation (NASDAQ: USEA) is a Greece-based shipping company that offers marine transportation services worldwide. The company primarily focuses on dry bulk vessels.

For the first quarter ended March 31, 2023, United declared a quarterly cash dividend of $0.075 per share, totaling cash dividends of $1.15 per share or $8.7 million since November 2022. The company signed purchase agreements for six vessels worth $126 million, which includes two Capesize and two Kamsarmax vessels with the remaining two being Panamax vessels through bareboat charter agreements with purchase options.

United Maritime Corporation incurred a net loss of $4.9 million for Q1 2023 with an adjusted net loss of $3.7 million. The company reported negative adjusted EBITDA1 of $1.5 million. Shares were sold for a loss of $0.64 per basic and diluted shares. The Time Charter Equivalent rate (“TCE rate”) for the first quarter of 2023 was $10,294 per day.

As of March 31, 2023, cash and cash-equivalents balance stood at $20 million. Shareholders’ equity amounted to $61.9 million as of the first quarter, while long-term debts, lease liability, and other financial liabilities net of deferred charges were $69.5 million. The company’s book value of the fleet was $117 million as of March 31, 2023.

My personal thoughts on the Q1 2023 results are mixed as there are both positive and negative aspects. On the positive side, the company’s ability to sign agreements for six new vessels at $126 million is a good indicator of growth. The cash dividend of $0.075 per share for Q1 2023 and total cash dividends of $1.15 per share or $8.7 million since November 2022 is also a good sign for potential investors. However, there were negative aspects to the financial results as well given the company incurred a net loss of $4.9 million for the quarter with negative adjusted EBITDA1 of $1.5 million.

Considering the uncertainty surrounding the future of shipping companies, I would recommend investors hold onto their shares of United Maritime Corporation. While Q1 2023 results were less than impressive, the purchase agreements for new vessels and payment of dividends could mean that the company has a bright future.

SigmaTron International, Inc. Posts Q3 2023 Earnings Report

SigmaTron International, Inc. (NASDAQ: SGMA), known for providing electronic manufacturing services, has released its Q3 2023 earnings report. The company’s Q3 revenue fell by $0.5 million (0.5%), with net losses of $23,077,664, including a $23,096,771 charge for the impairment of goodwill and long-term assets. It was a significant decline from the $2,724,297 net loss from the same period last year. Despite the negative results, the revenue for the nine months ended January 31, 2023, increased by $27.9 million (10%) to $307.5 million compared to the same period last year.

As an EMS provider, SigmaTron International, Inc. is in an industry that is facing increased competition, especially from Asia and China. The company’s strategy of focusing on high-reliability sectors has helped it limit that competition and deliver reliable services to customers. However, the results for Q3 2023 have been disappointing compared to the same period last year. Nevertheless, the nine-month revenue increase demonstrates potential for the company’s future growth.

Considering the company’s Q3 earnings report, and the ongoing competition it faces, I would recommend holding on to SGMA stocks for now. It’s worth keeping an eye on future earnings reports to see if SigmaTron International, Inc. can turn things around eventually.

Brady Corp (BRC) Reports Record High EPS in Q3 2023

Brady Corporation (NYSE: BRC), a leading identification solutions company, reported a 23.1 percent increase in diluted earnings per share (EPS) to a record high of $0.96 in the third quarter of fiscal 2023, compared to $0.78 in the same quarter of the prior year. Excluding certain items, diluted EPS increased 10.5 percent to a record high of $0.95 during the same period.

Sales for Q3 2023 were $337.1 million, marking a 0.4 percent decrease compared to the prior year’s quarter. The quarter saw an increase in organic sales by 1.9 percent, offset by a 2.1 percent reduction from foreign currency and 0.2 percent from the divestiture of the PremiSys business.

Despite the decline in sales, the company saw an increase in net cash provided by operating activities, which grew by 77.2 percent to $72.5 million during the third quarter of fiscal 2023. Brady Corporation also provided an adjusted earnings per diluted Class A Common Share guidance for the full year ending July 31, 2023, with a lower range of $3.32 to $3.47 on a GAAP basis and a higher range of $3.45 to $3.60 on a non-GAAP basis.

Considering the new reportable segments and the increase in diluted EPS, it is a positive sign for investors to hold onto their stocks or buy more. Brady Corporation has been expanding its business and capitalizing on the demand for identification solutions globally, making it an attractive pick for long-term investors. Therefore, I recommend buying the stock.

Lightspeed Commerce Inc. (LSPD) Reports 33% YoY Total Revenue Growth for Fiscal 2023

Lightspeed Commerce Inc. (LSPD), the one-stop commerce platform for merchants around the world, has reported a 33% year-over-year (YoY) total revenue growth for Fiscal 2023, which reached $730.5 million (36% in constant currency). The company’s annual Net Retention Rate stood at approximately 110%, and total revenue for the first quarter grew 26% YoY to $184.2 million (27% growth in constant currency). Adjusted EBITDA losses were significantly better than the company’s previously-established outlook and are on track for break even for Fiscal 2024. Additionally, Lightspeed has recently launched a unified POS and payments initiative and has seen a 70% YoY growth in Gross Payments Volume for the quarter, amounting to $3.8 billion. Customer Locations processing more than $500,000/year in GTV grew by 13% YoY in the quarter.

Personally, I am optimistic about LSPD’s performance and growth prospects. The company’s focus on simplifying its product portfolio by consolidating its nine different products into two flagship platforms – Lightspeed Retail and Lightspeed Restaurant – has allowed it to increase its focus on its target customers and accelerate its innovation engine. The 110% net retention rate reflects the loyalty of its existing customers and is an indication that these businesses continue to expand their technology suite with LSPD as they grow and thrive. The impressive increase in Gross Payments Volume and growth in Customer Locations processing more than $500,000/year are further indicators of LSPD’s great potential.

As a result, I recommend buying LSPD stock. The company’s solid performance, its focused product portfolio, and its innovative approach to simplifying commerce for merchants around the world make it an attractive investment option.

UCLOUDLINK Group Inc. Reports Strong Q1 2023 Financial Results

UCLOUDLINK Group Inc. (NASDAQ: UCL), known for its innovative mobile data traffic sharing platform, announced its Q1 2023 financial results, reflecting strong growth for the company. The company reported total revenues of $18.0 million, an increase of 15.3% from the same period last year.

Moreover, UCLOUDLINK reported an impressive income from operations of $2.1 million, compared to a loss from operations of $7.6 million in the same period in 2022. The company also reported net income of $2.1 million, a marked improvement from a net loss of $7.9 million in Q1 2022.

In addition to the good financial results, UCLOUDLINK also reported promising operational highlights with 43,936 terabytes of data consumed in the first quarter of 2023, through the company’s platform. Compared to the same period last year, this represents an increase of 4.5%. Furthermore, the company reported that during Q1 2023, the average daily active terminals were 304,121. This represents an increase of 11.0% compared to the same period in 2022.

As an investor, I am pleased with these financial results as it indicates that the company is steadily growing. I believe UCLOUDLINK is well-positioned to thrive in the ever-evolving world of technology and data sharing.

Overall, I recommend holding onto the stock, especially for long-term investors. UCLOUDLINK’s innovative platform and impressive growth in Q1 2023 are positive indicators of the company’s potential for future growth.

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