SigmaTron Incurs Q4 Loss, Revenues Drop on Weak Demand

Zacks09-04

SigmaTron International, Inc. SGMA reported a challenging fourth quarter of fiscal 2024. It incurred a loss per share of 55 cents in the quarter under review against earnings of 87 cents per share in ...

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It incurred a loss per share of 55 cents in the quarter under review against earnings of 87 cents per share in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sigmatron-incurs-q4-loss-revenues-145400607.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SigmaTron Incurs Q4 Loss, Revenues Drop on Weak Demand</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSigmaTron Incurs Q4 Loss, Revenues Drop on Weak Demand\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-04 22:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sigmatron-incurs-q4-loss-revenues-145400607.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SigmaTron International, Inc. SGMA reported a challenging fourth quarter of fiscal 2024. It incurred a loss per share of 55 cents in the quarter under review against earnings of 87 cents per share in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sigmatron-incurs-q4-loss-revenues-145400607.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SGMA","symbol_name":"喜玛庆国际","start_time":0,"source_url":"https://finance.yahoo.com/news/sigmatron-incurs-q4-loss-revenues-145400607.html","article_id":"2465585546","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Dq1vlMLW3T8P7HdViFj_kQ--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/3eef6fea1055ab55d5c65f84ddc8db0f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2465585546","pubTimestamp":1725461640,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"SigmaTron International, Inc. SGMA reported a challenging fourth quarter of fiscal 2024. It incurred a loss per share of 55 cents in the quarter under review against earnings of 87 cents per share in the same period last year.SigmaTron’s revenues from continuing operations were $81.1 million, a 25% decrease compared to $108.3 million in the same period in 2023. The company incurred a net loss of $3.4 million for the quarter against a net income of $5.3 million in the prior-year period.Management highlighted several factors that contributed to the company’s weak financial performance. These included a broad industry slowdown and the continued fallout from supply chain disruptions, which reduced customer demand and put pressure on the company’s sales.SigmaTron International, Inc. Price, Consensus and EPS Surprise. SigmaTron International, Inc. price-consensus-eps-surprise-chart | SigmaTron International, Inc. Quote. SigmaTron’s total revenues for fiscal 2024 from continuing operations st","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SGMA":"喜玛庆国际"},"translate_title":"SigmaTron第四季度亏损，需求疲软导致收入下降","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SGMA":0.9},"content_text":"SigmaTron International, Inc. SGMA reported a challenging fourth quarter of fiscal 2024. It incurred a loss per share of 55 cents in the quarter under review against earnings of 87 cents per share in the same period last year.\nSigmaTron’s revenues from continuing operations were $81.1 million, a 25% decrease compared to $108.3 million in the same period in 2023. The company incurred a net loss of $3.4 million for the quarter against a net income of $5.3 million in the prior-year period.\nManagement highlighted several factors that contributed to the company’s weak financial performance. These included a broad industry slowdown and the continued fallout from supply chain disruptions, which reduced customer demand and put pressure on the company’s sales.\n\nSigmaTron International, Inc. Price, Consensus and EPS Surprise\n  \nSigmaTron International, Inc. price-consensus-eps-surprise-chart | SigmaTron International, Inc. Quote\n\nSGMA’s Quarterly Performance Overview\nThe quarterly performance of SigmaTron paints a stark picture of the difficulties the company has faced. A revenue drop of $27.1 million in the fiscal fourth quarter was primarily attributed to a broader softness in customer demand, particularly in February 2024, and although customer backlogs remained strong, this softness persisted through the end of the fiscal year. This decline is reflective of larger macroeconomic issues, including an industry slowdown and the lingering impacts of global supply chain disruptions, which have been affecting the electronic manufacturing services sector throughout the fiscal year.\nSigmaTron’s cost structure came under significant pressure due to the drop in revenues. To mitigate these pressures, SigmaTron implemented several cost-saving measures, including the sale of its Elgin building and the consolidation of operations into its Elk Grove Village headquarters. Additionally, the company enacted layoffs and retirements, reduced working hours at several facilities and focused on lowering inventory levels to better manage its working capital requirements. These efforts have helped to reduce the company’s operational costs, although they have not fully offset the negative impact of the revenue decline.\nSigmaTron’s financial difficulties led to violations of covenants with its secured lenders. However, the company successfully renegotiated its loan agreements, obtaining waivers for these violations and amending the agreements. Additionally, SigmaTron engaged Lincoln International to explore strategic alternatives for reducing its debt, with several initiatives already underway. Management expressed confidence that these measures, combined with ongoing cost-cutting efforts, will allow the company to remain in compliance with its amended loan agreements moving forward.\nSigmaTron’s Fiscal 2024 Update\nSigmaTron’s total revenues for fiscal 2024 from continuing operations stood at $373.9 million, a decrease of $40.6 million, or 10% compared to $414.4 million in fiscal 2023. This contraction was paired with a shift from a net income of $14.2 million in fiscal 2023 to a net loss of $2.5 million in fiscal 2024, further underlining the company’s difficulties in maintaining profitability amid declining revenues. Loss per share for the year was 41 cents, in contrast to earnings per share of $2.34 for the previous year.\nManagement Guidance for SGMA\nThe outlook from SigmaTron’s management remains cautiously optimistic. Although demand remained weak through the first quarter of fiscal 2025, several customers have indicated that they expect demand to recover by the fourth quarter of calendar 2024. In preparation for this potential rebound, the company is continuing to streamline its operations and lower costs. While uncertainty remains due to broader economic volatility and geopolitical risks, SigmaTron’s management believes that the company is well-positioned to capitalize on a recovery in demand should it materialize.\nSGMA’s Other Developments\nIn addition to the cost-reduction initiatives and loan renegotiations, SigmaTron made a notable move during the quarter. The sale of SigmaTron’s Elgin facility, which was completed in February 2024, was a key component of the company’s cost-reduction strategy. The proceeds from this sale helped to strengthen SigmaTron’s balance sheet and provided additional liquidity to support ongoing restructuring efforts. This move also allowed the company to consolidate its operations into its Elk Grove Village facility, further reducing overhead costs.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nSigmaTron International, Inc. (SGMA): Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2465585546"}