Avantax's Return On Capital Employed Insights
Portfolio Pulse from Benzinga Insights
Avantax (NASDAQ:AVTA) reported a 99.55% decrease in earnings from Q4, despite a 3.24% increase in sales to $177.98 million. The company posted an ROCE of 0.0% in Q1, suggesting effective capital allocation. However, Q1 earnings per share of $-0.01 did not meet analyst predictions of $0.18.
May 22, 2023 | 2:56 pm
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Avantax's Q1 earnings decreased by 99.55% while sales increased by 3.24%. The company's ROCE of 0.0% suggests effective capital allocation, but EPS missed analyst expectations.
The significant decrease in earnings and missed EPS expectations may negatively impact Avantax's stock price in the short term. However, the increase in sales and effective capital allocation indicated by the ROCE could provide some support for the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100