Live Ventures Clocks FY23 Revenue Growth, CFO Highlights Acquisitions as Key Driver
Portfolio Pulse from Anusuya Lahiri
Live Ventures Inc (NASDAQ: LIVE) reported a 23.8% increase in FY23 sales to $355.17 million, surpassing consensus estimates. Despite overall growth, the Retail Entertainment and Flooring Manufacturing segments saw revenue declines due to reduced demand. The Steel Manufacturing segment, however, grew by 46.7% primarily due to the acquisition of Kinetic. The company posted an EPS loss of $(0.03), missing the consensus of $2.85. Gross profit rose by 18.1%, but operating income dropped by 40.4% due to inflationary costs and higher expenses from recent acquisitions. Adjusted EBITDA increased by 8.3% to $9.6 million, attributed to acquisitions. The company ended the fiscal year with $37.1 million in cash availability. The FY24 revenue consensus is $421 million, and the stock has declined by 21% year-to-date. LIVE shares are up 1.50% at $25.70 in recent trading.

December 20, 2023 | 3:32 pm
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POSITIVE IMPACT
Live Ventures reported strong revenue growth but faced an EPS loss and a decrease in operating income. The growth was largely attributed to strategic acquisitions, which may be viewed positively by investors.
The positive revenue growth and successful acquisitions are likely to be viewed favorably by investors, despite the EPS miss and lower operating income. The stock's recent uptick suggests a short-term positive impact.
CONFIDENCE 85
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RELEVANCE 100