United-Guardian Reports Y/Y Rise in Q3 Earnings, Flat Revenues

Core Viewpoint - United-Guardian, Inc. demonstrated resilience in Q3 2024 with strong results driven by growth in key product segments and effective cost management, positioning the company for sustained growth despite challenges in its pharmaceutical operations [1] Q3 Results - The company reported a 35.7% increase in earnings per share, reaching 19 cents compared to 14 cents in the prior-year quarter [2] - Total quarterly sales remained stable at $3.06 million, unchanged from the year-ago quarter [2] Disaggregated Sales by Products - Cosmetic Ingredients segment experienced an 8% year-over-year sales growth, driven by increased orders from the largest cosmetic distributor [3] - Medical Lubricants sales decreased by 2% year-over-year due to standard fluctuations in order patterns [3] - Pharmaceutical Products sales dropped 6% from Q3 2023, impacted by supply disruptions affecting the production of Renacidin [4] Profitability Metrics - Operating income rose by 31.5% to$ 0.95 million from $0.72 million in the prior-year quarter [5] - Net income increased by 38% to$ 0.9 million from $0.6 million in the prior-year quarter, despite flat sales [5] Cost Analysis - Total costs and expenses decreased to$ 2.1 million from $2.3 million in the prior-year period, with significant reductions in the cost of sales [6] - Operating expenses increased to$ 0.6 million from $0.5 million, indicating higher spending on operational needs [7] Management View - Management expressed optimism about future sales growth as production issues surrounding Renacidin are expected to be resolved, potentially boosting revenues from pharmaceutical products [8] Conclusion - United-Guardian's Q3 2024 results reflect stable revenues, substantial earnings growth, and improved cost management, with rising cosmetic ingredient sales and anticipated recovery in pharmaceuticals indicating steady performance [9]