Surge Components Q3 sales fall on lower customer volumes

By Reuters News


Overview

  • US electronic components supplier's Q3 net sales declined yr/yr

  • Gross profit for Q3 fell yr/yr

  • Q3 EPS dropped to $0.04 from $0.08 yr/yr


Outlook

  • Company anticipates ongoing customer pressure for price reductions, which may impact margins


Result Drivers

  • LOWER CUSTOMER VOLUME - Co said Q3 sales decline was due to decreased volume from certain customers

  • PRODUCT MIX - Co said lower Q3 gross profit was due to decreased business with existing customers and sales of lower-margin products

  • HIGHER SELLING EXPENSES - Co said increased Q3 selling expenses were due to hiring more sales personnel and higher commissions


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

$10.10 mln

Q3 EPS

$0.04

Q3 Gross Margin

27.1%

Q3 Gross Profit

$2.70 mln


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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