Stocks Update: U.S. Global Investors, Crown Crafts, Methode Electronics, Steelcase, and La-Z-Boy – June 23, 2023

Welcome to my daily stock update blog post where I bring you the latest news on stocks that I own. Today, we’ll be discussing the quarterly financial reports of five companies: U.S. Global Investors, Crown Crafts, Methode Electronics, Steelcase, and La-Z-Boy. These reports detail their net income, financial results, and operating income, giving us insight into their performance. Let’s dive in and see how these companies are doing

avel ETF (JETS) makes successful takeoff in Q1 2023

US Global Investors Inc. reports strong financial results for Q1 ending March 31, 2023. The company recorded net income of $1.6 million, representing an 89% increase over the previous quarter’s net income. The average assets under management (AUM) for the quarter were $2.5 billion, while total AUM at period-end was $2.3 billion. The Global Luxury Goods Fund (USLUX) also performed well during the quarter led by strong advances from Tesla, the fund’s number one holding.

The Air Travel ETF (JETS) was among the few other sector-specific funds to make a successful takeoff in Q1 2023. JETS invested in airline stocks across the globe and gained 15.9% in the period. With an increasing number of people getting vaccinated and travel bans lifting, the airline industry is slowly starting to recover from the pandemic’s impact.

My personal thoughts on the matter are optimistic, considering the robust performance of the company in Q1. As the global economy continues to recover from the pandemic, US Global Investors Inc. seems well-positioned to take advantage of emerging opportunities across the globe. I would recommend holding on to their stocks.

Overall, the Q1 report is encouraging, demonstrating the strength of the company’s entire portfolio, including USLUX and JETS, and suggesting that investors should continue to hold on to the stock for the foreseeable future.

Crown Crafts, Inc. Reports Fiscal Year 2023 Results

Crown Crafts, Inc., a company that designs, markets, and distributes infant, toddler, and juvenile consumer products, has reported their results for the fourth quarter and fiscal year 2023. Despite the multiple headwinds that the company faced in the fiscal year, including the excess inventory levels related to port delays, inflationary pressures, and lower consumer spending trends, Crown Crafts managed to report net sales of $75.1 million, a decrease from $87.4 million in fiscal year 2022. They also reported a gross margin of 26.4% of net sales and net income of $5.7 million, a decrease from the prior year.

The company’s President and Chief Executive Officer, Olivia Elliott, expressed confidence in their overall position, stating that they remain well-positioned to withstand the current macroeconomic environment thanks to their strong balance sheet. The acquisition of Manhattan Toy in March may also prove to be beneficial for Crown Crafts in fiscal year 2024. The acquisition provides them with better purchasing power, broader product offerings, and greater distribution channels.

As a current stockholder of Crown Crafts, I am hopeful that the acquisition of Manhattan Toy will bring positive growth for the company in the future. Although the fiscal year 2023 results were lower compared to the prior year, Crown Crafts still maintains profitability. However, investors should be mindful of the challenges the company has faced and keep an eye out for any potential roadblocks in the upcoming fiscal year. I recommend holding the stock for now, but closely monitoring the company’s performance in the coming months.

ed improvement in material cost inflation and continued growth in EV applications provides optimism for fiscal 2025 and beyond.”

Methode Electronics Announces Strong Fiscal Fourth Quarter Results

Methode Electronics, Inc. (NYSE: MEI), a global supplier of custom-engineered solutions for user interface, LED lighting and power distribution applications, announced its fourth quarter and full-year financial results for fiscal 2023. The company reported record electric and hybrid vehicle application sales, strong cash flow, over $250 million in program awards, and nearing completion of its acquisition of Nordic Lights Group Corporation.

Electric and hybrid vehicle applications accounted for 23% of net sales, a new record for the company based on dollar basis. Methode Electronics was awarded programs with expected annual sales of over $250 million and purchased 191,722 shares of its common stock for $8.5 million.

Personally, I am bullish on Methode Electronics as their thriving electric and hybrid vehicle applications indicate a growing market for their products. Additionally, their strong cash flow and program awards demonstrate potential for future growth. While President and CEO Donald W. Duda predicts lower earnings in fiscal 2024 due to significant investment in transition efforts towards lighting and power solutions, the overall trajectory of the company appears promising. I would recommend buying and holding this stock.

Steelcase Inc. Reports Year-over-Year Revenue Growth, Gross Margin Improvements and Projects Positive Outlook

Steelcase Inc., a global provider of workplace solutions, reported impressive results in its first quarter of fiscal year 2024. The company reported revenue of $751.9 million, marking a 2% increase from the prior year. Steelcase recorded a gross margin improvement of 530 basis points driven by its strong pricing abilities and operational efficiencies.

In addition to the revenue growth, the company has reported optimistic results in organic revenue growth in the Americas. Steelcase experienced a 2% organic growth in the region compared to the prior year’s 6% organic decline. This positive growth was due to faster order fulfillment patterns and higher pricing, partially offset by a lower beginning backlog.

However, the company experienced an organic order decline of 7% compared to the prior year, primarily driven by the decline in project business. The International market experienced a decline in orders as well, down 11% from the prior year. This decline was primarily due to lower beginning backlog and continued macroeconomic concerns.

Despite the decline in orders, Steelcase is projecting a positive outlook for the first half of fiscal year 2024. The company expects to be ahead of pace against its full-year financial targets, proving that Steelcase is well-positioned to continue its growth and success in the workplace solutions industry.

As an investor in Steelcase, these results are promising and I will continue to hold my shares. The revenue growth and gross margin improvement reflect the company’s ability to adapt to a dynamic environment and maintain its profitability. While the decline in organic orders is a notable concern, the projected outlook for the first half of fiscal year 2024 gives me confidence in the company’s ability to rebound. Therefore, I recommend holding onto the stock at the moment.

La-Z-Boy Incorporated Reports Solid Fourth Quarter and Full Year Results

La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential furniture, has reported solid fourth quarter and full year results for the period ending April 29, 2023. The company has achieved a consolidated sales of $561 million, which is a -12% adjustment for the 53rd week in the fourth quarter of fiscal 2022. The Retail segment sales have increased by 4% to $243 million, which is a +12% adjustment for the 53rd week in the fourth quarter of fiscal 2022.

The company has achieved a record sales, operating profit, and operating margin, with GAAP operating income increasing by 2% and Non-GAAP operating income increasing by 17%. GAAP operating margin has increased by 20 basis points to 9.0% and Non-GAAP operating margin increased by 140 basis points to 9.5%. GAAP diluted EPS has increased by 3% to $3.48 and Non-GAAP diluted EPS has increased by 24% to $3.86.

As an investor, I am impressed by La-Z-Boy’s solid execution, disciplined supply chain investments, and the strength of its vertically integrated Retail and Furniture segments. The company has generated cash from operating activities more than twice to $205 million. This is a great indication of the company’s ability to grow profitability and invest in the business.

My personal thoughts are that La-Z-Boy is a buy. The company has shown resilience during the pandemic, and it seems like furniture spending has increased as people are now spending more time at home. There is also potential for growth in the international markets as the company continues its expansion.

In conclusion, La-Z-Boy’s report of solid fourth quarter and full year results is a positive sign for its investors. The company’s disciplined supply chain investments and solid execution in the retail stores have led to record sales and operating profit. With the potential for growth in the international markets and increased furniture spending, La-Z-Boy is a buy for investors.

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