Latest news with #TheEasternCompany
Associated Press
03-08-2025
- Business
- Associated Press
The Eastern Company Declares 340th Consecutive Quarterly Cash Dividend
SHELTON, CT / ACCESS Newswire / August 2, 2025 / On July 31, 2025, The Eastern Company (NASDAQ:EML) declared its regular quarterly cash dividend of eleven cents ($0.11) per share, payable September 15, 2025, to common shareholders of record as of August 15, 2025. This dividend represents the Company's 340th consecutive quarterly dividend. About The Eastern Company The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to markets. Eastern's businesses operate in industries that offer long-term macroeconomic growth opportunities. The Company operates from locations in the U.S., Canada, Mexico, Taiwan, and China. More information on the Company can be found at Safe Harbor for Forward-Looking Statements Statements contained in this release that are not based on historical facts are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as 'would,' 'should,' 'could,' 'may,' 'will,' 'expect,' 'believe,' 'estimate,' 'anticipate,' 'intend,' 'continue,' 'plan,' 'potential,' 'opportunities,' or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include the impact of the COVID-19 pandemic and resulting economic effects, the impact of higher raw material and component costs and cost inflation, supply chain disruptions and shortages, particularly with respect to steel, plastics, scrap iron, zinc, copper and electronic components, rising interest rates, delays in delivery of our products to our customers, the impact of global economic conditions on demand for our products, including the impact, length and degree of economic downturns on the customers and markets we serve, reductions in production levels, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, the potential impact of bank failures on our ability to access financing or capital markets, and the impact of market conditions on pension plan funded status. Other factors include, but are not limited to: restrictions on operating flexibility imposed by the agreement governing our credit facility; risks associated with doing business overseas, including fluctuations in exchange rates and the inability to repatriate foreign cash, the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs and the impact of political, economic and social instability; the inability to achieve the savings expected from global sourcing of materials; lower-cost competition; our ability to design, introduce and sell new or updated products and related components; market acceptance of our products; the inability to attain expected benefits from acquisitions or the inability to effectively integrate such acquisitions and achieve expected synergies; domestic and international economic conditions, and more specifically conditions in the automotive, construction, aerospace, energy, oil and gas, transportation, electronic, and general industrial markets; costs and liabilities associated with environmental compliance; the impact of climate change; military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and geopolitical consequences) or terrorist threats and the possible responses by the U.S. and foreign governments; failure to protect our intellectual property; cyberattacks; materially adverse or unanticipated legal judgments, fines, penalties or settlements; and other risks identified and discussed in Item 1A, Risk Factors, and Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of the Company's Annual Report on Form 10-K for the year ended December 28, 2024, filed with the Securities and Exchange Commission (the 'SEC') on March 11, 2025, and that may be identified from time to time in our quarterly reports on Form 10-Q, current reports on Form 8-K and other filings we make with the SEC. Although the Company believes it has an appropriate business strategy and the resources necessary for its operations, future revenue and margin trends cannot be reliably predicted and the Company may alter its business strategies to address changing conditions. Also, the Company makes estimates and assumptions that may materially affect reported amounts and disclosures. These relate to valuation allowances for accounts receivable and excess and obsolete inventories, accruals for pensions and other postretirement benefits (including forecasted future cost increases and returns on plan assets), provisions for depreciation (estimating useful lives), uncertain tax positions, and, on occasion, accruals for contingent losses. The Company undertakes no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise, except as required by law. The Eastern Company Ryan Schroeder or Nicholas Vlahos, 203-729-2255 SOURCE: The Eastern Company press release
Yahoo
13-05-2025
- Business
- Yahoo
EML Q1 Earnings Dip Y/Y Amid Truck Market Headwinds, Stock Up 9%
Shares of The Eastern Company EML have gained 9.4% since the company reported its earnings for the quarter ended March 29, 2025. This compares with the S&P 500 index's 0.2% decline over the same time frame. Over the past month, the stock has gained 2.6% compared with the S&P 500's 4.4% growth. Eastern posted first-quarter 2025 earnings per share from continuing operations of 31 cents, down from 34 cents a year earlier. Adjusted earnings per share slipped to 32 cents from 34 cents a year ago. (See the Zacks Earnings Calendar to stay ahead of market-making news.) The company's net sales from continuing operations of $63.3 million denoted a 2% decrease compared to $64.6 million in the year-ago period. Adjusted EBITDA also declined modestly to $4.6 million from $4.8 million a year ago, reflecting ongoing market headwinds, particularly in the heavy-duty truck segment. The Eastern Company price-consensus-eps-surprise-chart | The Eastern Company Quote Eastern's gross margin in the quarter was 22.4%, down from 23.9% in the same quarter last year. The company attributed this decline to higher raw material costs, partially offset by pricing actions. Meanwhile, selling, general and administrative (SG&A) expenses dropped by $0.8 million, or 8%, to $9.8 million. This decrease was driven by lower payroll-related expenses, partially offset by increased sales commissions. As a percentage of net sales, SG&A costs improved to 15.6% from 16.5% in the prior-year period. Operating income was $3.2 million, slightly lower than $3.4 million in the prior year. Net income from continuing operations stood at $1.9 million compared to $2.1 million in the year-ago period. On the cash flow front, the company used $1.8 million in operating activities, down from a positive $2.8 million in the prior year, reflecting significant changes in working capital and lease-related adjustments. CEO Ryan Schroeder described the first quarter as a period of 'significant change,' with the new leadership team focusing on sales growth, cost reduction, and operational efficiency. He acknowledged the challenging macroeconomic environment, particularly the slowdown in the heavy-duty truck market, which pressured the company's performance and backlog. Nevertheless, Schroeder emphasized Eastern's strategy to remain agile, defend margins, and leverage its entrepreneurial culture to build product roadmaps and explore acquisition opportunities. Chairman James Mitarotonda echoed this sentiment, commending management for accelerating execution and positioning the company for long-term success. The board's confidence was underscored by a new share repurchase program, authorizing the buyback of up to 400,000 shares over the next five years, doubling the size of the recently completed program. The revenue decline was primarily due to lower sales in truck mirror assemblies and accessories, although these were partially offset by stronger demand in returnable transport packaging products. The gross margin compression was largely a result of elevated raw material costs. Despite these pressures, Eastern implemented pricing actions to help protect margins. Lower SG&A expenses also contributed to earnings stability. Payroll-related savings were partly redirected into higher commission expenses, aligning with the company's focus on incentivizing sales performance. Additionally, the company absorbed modest restructuring charges related to facility and personnel changes. A notable strategic move during the quarter was the April 30 completion of the divestiture of Big 3 Mold's injection stretch blow molding (ISBM) unit, one of three divisions within the Big 3 Mold business. This sale, along with the geographic repositioning of Big 3 Precision's engineering and manufacturing operations, is expected to enhance efficiency and lower operating costs. The company transitioned prototyping from Dearborn, MI, to Sterling Heights, and consolidated production into its Centralia, Illinois facility, a process slated for completion in the second quarter. 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 Eastern Company (The) (EML): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-02-2025
- Business
- Yahoo
The Eastern Company (NASDAQ:EML) is largely controlled by institutional shareholders who own 63% of the company
Institutions' substantial holdings in Eastern implies that they have significant influence over the company's share price A total of 8 investors have a majority stake in the company with 52% ownership Insiders have bought recently To get a sense of who is truly in control of The Eastern Company (NASDAQ:EML), it is important to understand the ownership structure of the business. With 63% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's delve deeper into each type of owner of Eastern, beginning with the chart below. View our latest analysis for Eastern Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Eastern. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Eastern's historic earnings and revenue below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It would appear that 10% of Eastern shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. GAMCO Investors, Inc. is currently the company's largest shareholder with 11% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 8.1% by the third-largest shareholder. On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. We can report that insiders do own shares in The Eastern Company. As individuals, the insiders collectively own US$12m worth of the US$174m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a 20% stake in Eastern. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Eastern is showing 1 warning sign in our investment analysis , you should know about... Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
