Alliance Entertainment Q1 revenue rises 10% on physical media and collectibles
Overview
US entertainment distributor's fiscal Q1 revenue rose 10% yr/yr, driven by physical media and collectibles
GAAP diluted EPS for fiscal Q1 increased 50% yr/yr to $0.15
Company attributed growth to higher sales of physical movies, vinyl, CDs, and collectibles
Outlook
Company says priorities for fiscal 2027 include profitable growth and working-capital efficiency
Alliance Entertainment expects continued investment in inventory to support anticipated sales activity
Company did not provide specific financial guidance for the current quarter or full year
Result Drivers
PHYSICAL MEDIA GROWTH - Higher sales of physical movies, vinyl, and CDs drove revenue gains, supported by new releases and expanded retail availability
COLLECTIBLES DEMAND - Collectibles revenue surged 87%, aided by expanded licensed merchandise, broader sourcing and proprietary brands
GROSS MARGIN IMPROVEMENT - Gross margin rose to 15.1% from 14.6%, reflecting stronger product margins and favorable product mix
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $278.83 mln | $251.50 mln (2 Analysts) |
Q1 EPS | $0.15 | ||
Q1 Net Income | $7.62 mln | ||
Q1 Adjusted EBITDA | Beat | $12.31 mln | $11.33 mln (2 Analysts) |
Q1 Gross Margin | 15.10% | ||
Q1 Gross Profit | $42.1 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Alliance Entertainment Holding Corp is $9.00, about 96.1% above its November 11 closing price of $4.59
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)