Taylor Devices Q2 Earnings Fall 39% Y/Y, Shares Drop 2%

Stock Performance - Shares of Taylor Devices declined 18% since the earnings report for the quarter ended Nov 30 2024 compared to the S&P 500's 06% growth over the same period [1] - Over the past month the stock has declined 237% compared with the S&P 500's 14% decline [1] Financial Performance - Earnings per share (EPS) for the fiscal second quarter were 34 cents down from 56 cents in the prior-year period [1] - Sales for the quarter were $86 million reflecting a 17% decrease from $103 million in the prior-year quarter [2] - Net earnings declined to $11 million compared to $2 million a year earlier a 47% drop [2] Business Metrics - The company's firm order backlog increased to $345 million from $331 million at the beginning of the fiscal year [3] - First-half sales were $202 million the second-highest in company history slightly trailing last year's record of $203 million [3] - Net earnings as a percentage of sales for the first half remained stable at 185% comparable to last year's 189% [3] Management Commentary - Management is committed to pursuing growth opportunities in Aerospace/Defense Structural and Industrial markets [4] - The company's custom-engineered products are critical to its customers and there is optimism about sustaining profitable growth in these markets [4] - Despite the quarterly decline in sales and net earnings the operational pipeline remains strong with a strategic focus on core markets [4] Factors Influencing Performance - The decline in quarterly sales and net earnings was primarily due to reduced sales volume compared to the prior year [5] - The company operates in a competitive and specialized market where sales volumes significantly influence quarterly performance metrics [5]