CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Outsourced marketing solutions provider Stran swings to Q3 profit on SLS segment strength

By Reuters News


Overview

  • Outsourced marketing solutions provider's Q3 revenue rose 8.2% yr/yr

  • Company swung to Q3 net profit from loss a year earlier

  • Gross profit climbed 32% yr/yr, with margin rising to 33.3%


Outlook

  • Company to focus on converting revenue growth into stronger earnings and cash flow

  • Stran to continue share repurchases as part of capital allocation strategy

  • Company expects to enter next growth phase from a stronger financial position


Result Drivers

  • SLS SEGMENT IMPROVEMENT - Co said SLS segment profitability rose due to improved customer mix, cost management, lower tariffs and a $0.2 mln tariff refund

  • OPERATIONAL IMPROVEMENTS - Co attributed stronger results to operational improvements and strategic investments

  • EXPENSE CONTROL - Operating expenses grew more slowly than sales, lowering expenses as a percentage of revenue


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$28.1 mln

Q3 Gross Profit

$9.4 mln


Reuters Recommended Reads

  • Nov 10 - Sally Beauty Q4 sales slightly beat estimates on e-commerce growth

  • Nov 9 - Turning Point Brands beats Q3 profit expectations on strong demand

  • Nov 10 - Armanino Foods Q3 net sales rise 10% on food-service, international growth


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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.