Pierce Group Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag

Pierce Group (STO:PIERCE) Full Year 2023 Results

Key Financial Results

• Revenue: kr1.54b (down 8.0% from FY 2022).
• Net loss: kr96.0m (loss widened by 66% from FY 2022).
• kr1.21 loss per share (further deteriorated from kr0.98 loss in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Pierce Group EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 5.9%.

The primary driver behind last 12 months revenue was the Offroad segment contributing a total revenue of kr952.0m (62% of total revenue). Notably, cost of sales worth kr930.0m amounted to 61% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to kr505.0m (70% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of kr15.0m. Explore how PIERCE's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Specialty Retail industry in Sweden.

Performance of the Swedish Specialty Retail industry.

The company's shares are up 5.0% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Pierce Group, and understanding this should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.