Ambow Education Q2 EPS $(0.02) Up From $(0.05) YoY; Revenue $2.7M Down From $5M YoY
Portfolio Pulse from Benzinga Newsdesk
Ambow Education reported a decrease in Q2 2023 revenues to $2.7M from $5M in Q2 2022, a 46% drop, mainly due to the closure of Bay State College. However, EPS improved to $(0.02) from $(0.05) YoY. Gross profit fell 20% to $1.2M, but gross margin increased to 44.4% from 30%. Operating expenses decreased by 47.4% to $2M due to a one-time stock compensation in Q2 2022 and better expense control. Operating loss narrowed to $0.8M from $2.3M, and net loss to shareholders was $1.0M, or $0.02 per share, improving from a $2.5M loss, or $0.05 per share, in Q2 2022. Ambow had $12.4M in cash resources as of June 30, 2023.
November 28, 2023 | 9:41 pm
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NEUTRAL IMPACT
Ambow Education's Q2 2023 report shows revenue decline but improved EPS and narrower operating loss. Strong cash position maintained with $12.4M in resources.
While the revenue decline is significant, the improvement in EPS and gross margin, along with the reduction in operating loss, may be viewed positively by investors. The strong cash position provides some financial stability. However, the closure of Bay State College and the overall decrease in revenue could be concerning, leading to a neutral short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100