Latest news with #Espey
Yahoo
15-05-2025
- Business
- Yahoo
Espey Stock Gains 16% on Q3 Earnings Up Y/Y, Backlog Hits $138 Million
Shares of Espey Mfg. & Electronics Corp. ESP have gained 15.9% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 index's 4% growth over the same time frame. Over the past month, the stock has gained 19.8% compared with the S&P 500's 11.3% growth, reflecting strong investor confidence likely tied to the company's robust performance and expanding order pipeline. For the third quarter of fiscal 2025, Espey reported net income of 63 cents per share compared to 40 cents per share in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.) The company posted net sales of $10.3 million, a 24.8% increase from $8.3 million in the same period last year. Net income surged 65.2% to $1.7 million, compared to $1 million in the prior-year quarter. For the first nine months of fiscal 2025, net sales reached $34.4 million, marking a 26.7% increase from $27.1 million in the prior-year comparable period. Net income over the same nine-month period rose 32.9% to $5.2 million, or $1.95 per share, from $3.9 million, or $1.56 per share, a year ago. Espey Mfg. & Electronics Corp. price-consensus-eps-surprise-chart | Espey Mfg. & Electronics Corp. Quote A standout metric from the report was the significant expansion in Espey's backlog, which stood at $138 million as of March 31, 2025, up 63.9% from $84.2 million a year earlier. This robust increase is underpinned by new orders totaling $75.1 million during the first nine months of fiscal 2025, more than double the $27.8 million in new orders booked in the same period of the previous fiscal year. The order growth was boosted by a previously announced $19.8 million contract, which has helped cement a strong near-term production pipeline. The backlog figure suggests sustained demand across the company's core defense and industrial power supply markets, positioning Espey well for continued revenue expansion. President and CEO David O'Neil credited the company's year-over-year growth in sales and earnings to strategic margin improvement initiatives and operational execution. He noted the company's ability to improve margins on key programs and emphasized that the growth in backlog is a direct result of a record year for new orders. Espey's top and bottom-line performance was driven primarily by increased production volume and improved pricing or mix within its power supply and transformer programs. The earnings improvement reflects both the scale benefit of higher sales and management's ability to execute cost discipline. Though detailed margin data was not disclosed in the earnings release, O'Neil's reference to improving gross profits on key programs suggests enhanced profitability in high-contribution segments. Want 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 Espey Mfg. & Electronics Corp. (ESP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
3 Big Numbers: Examining major changes for QuikTrip, Walmart and 7-Eleven
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Parkland's tumultuous 2025 got more contentious this month as its largest shareholder not only put forward a competing set of board nominees, but also said quickly replacing CEO Bob Espey is one of its top priorities. Espey is stepping down by the end of the year, but his tenure could be cut much shorter if Simpson's nominees win. Whoever's in charge for the rest of the year will need to handle not just the search for a new CEO, but also an extensive strategic review, which could result in a sale of the company. We've covered that kerfuffle extensively. And while that's been going on, several larger retailers shared their own big plans for growth or changes in leadership. In today's '3 Big Numbers,' we look at QuikTrip adding a new state to its footprint, Walmart planning big inroads into the c-store space and Seven & i's board leadership succession plan. The total number of QuikTrip locations as of its debut in Indiana. There's been plenty of talk about the expansion plans from Wawa, Buc-ee's and Casey's General Stores. But QuikTrip has been quietly expanding its reach as well. As of its first opening in Indiana this month, there were 1,149 QuikTrip locations in the U.S. That's an increase of more than 10% from a little over a year ago, according to NACS and NielsenIQ data. From 2023 to 2024, QuikTrip's footprint grew nearly 7%. Besides Indiana, QuikTrip's nationwide expansion over the past couple of years has included opening its first convenience stores in Ohio and Nevada in 2024, as well as upcoming debuts in Kentucky, Florida and Utah. The expected growth of Walmart's c-store footprint from December 2024 to the end of 2025. QuikTrip managed about 10% store count growth in over a year, which is phenomenal. But Walmart is no slouch, either. In December, Walmart opened its 400th fuel station. By the end of this year, it hopes to have about 450, for a gain of 12.5%. There are a few reasons that a c-store boom from Walmart might be concerning for other convenience retailers. First, the big-box retailer has nearly unparalleled buying and bargaining power. That allows it to offer the same everyday low prices inside its convenience stores as it does in its big-box locations. Walmart also has an advantage when it comes to location. While it may need local approvals to put in fuel tanks or for other changes, it doesn't need to find and purchase sites. With more than 4,600 Walmarts in the U.S., the retailer has plenty of real estate already at its disposal where it could add c-stores. The number of years that Seven & i's new executive chairman, Junro Ito, has worked for the company. Seven & i, parent company of 7-Eleven, has had a wild 2025 so far. It came into the year weighing a takeover bid from Alimentation Couche-Tard, parent of Circle K. Since January, it has also announced a CEO shift, the planned IPO of its North American operations and a veritable conga line of board changes. Among these changes is vice president and representative director Junro Ito taking on the role of executive chairman. In that position, Ito 'will focus on fostering relationships with broader stakeholders, including employees and franchisees,' as well as working closely with incoming CEO Stephen Dacus, according to a letter from Seven & i on the change. Ito is new in the position but has a long history with Seven & i. He's a member of the founding family and has worked in and around 7-Eleven since 1990, according to his bio on the company website. While much of his career has been with 7-Eleven Japan, he's been a director of Seven & i since 2009. All that institutional knowledge should be helpful as Seven & i's first non-Japanese CEO takes the wheel. Recommended Reading QuikTrip opens first Indiana store Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Parkland CEO to step down in bid to diffuse conflict with activist shareholder
Parkland Corp.'s long-serving chief executive Bob Espey says he will step down in a bid to resolve the embattled fuel retailer's troubles with activist shareholders. The announcement comes as the bitter dispute between Parkland and its largest shareholder, Simpson Oil Ltd., threatened to come to a head at the Calgary-based company's upcoming annual general meeting on May 6, with Simpson calling for Espey's removal and for a whole new slate of directors to be installed. 'Over the past few months, it became clear that stepping down and announcing my departure may help bring resolution to the situation with Simpson Oil Ltd. and benefit all shareholders,' Espey said in a press release on Wednesday announcing plans for his departure and Parkland chair Michael Jennings's appointment as executive chair effective immediately. 'I remain deeply committed to Parkland and will support a smooth transition to new leadership. I look forward to working closely with Michael in his new role as executive chair.' Espey will stay on until a new CEO can be appointed, the company completes its previously announced strategic review or Dec. 31, whichever occurs first, the company said. His 15-year tenure at Parkland took the company from a few hundred gas stations in Canada to an international fuel distributor and refiner with 4,000 locations across North America and the Caribbean under brands such as Esso, Chevron, On the Run, Ultramar, Pioneer and Fas Gas Plus. 'Bob has led Parkland through a period of exponential growth, transforming the company from a small regional fuel retailer into one of Canada's leading fuel and convenience retailers with international operations in 26 countries,' Jennings said in a statement. 'We thank him for his unwavering commitment and dedication.' But in recent months, Espey and Parkland's board have come under intense pressure from activist shareholders Simpson and U.S. hedge fund Engine Capital LP, which have accused the company of mismanagement and underperformance. Bowing to activist pressure last month, Parkland launched a strategic review of the company's assets and options, including the potential sale of the company, and appointed new directors to the board. The appointments were dismissed by Simpson as 'tinkering' that has not addressed the root of the company's problems. Parkland's rocky history with its largest shareholder began in 2019 when it purchased a Caribbean convenience and fuel marketing company that was a subsidiary of the Cayman Islands-based Simpson Oil. The relationship appeared to take a turn in November 2022 when Simpson, which owns nearly 20 per cent of Parkland's shares, met with Parkland's management to discuss the company's share price returns, financial performance and 'strategic missteps.' The relationship soured further when Simpson took Parkland to court last year in a lawsuit over shareholder rights that resulted in the Ontario Superior Court of Justice siding with the activist investor. In a preview of its first-quarter earnings on Wednesday, Parkland said it is forecasting adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $375 million, and noted a write-down against its earnings of around $55 million related to its decision to wind down its Californian compliance market position. Parkland under pressure again from U.S. activist hedge fund Parkland targeted for shakeup by U.S. activist hedge fund The company said it expects full-year EBITDA to be toward the lower end of its previously announced range of $1.8 billion to $2.1 billion in 2025, based on current market conditions. • Email: mpotkins@
Bloomberg
16-04-2025
- Business
- Bloomberg
Parkland CEO to Step Down Under Pressure From Largest Investor
Parkland Corp. said Chief Executive Officer Bob Espey will step down as the fuel distributor comes under mounting pressure from its largest shareholder to undergo sweeping changes to its business and governance. Espey, who has led the Calgary-based company since 2011, will leave once a new CEO is appointed or the board's strategic review is done, or in December if neither of those things is completed by then. In the meantime, Michael Jennings has been made executive chair.
