Daily Journal(DJCO) ZACKS·2025-02-21 18:50Core Viewpoint - Daily Journal Corporation (DJCO) experienced a decline in share price following its earnings report for the quarter ended December 31, 2024, with a net income decrease and mixed revenue performance [1][2][4]. Financial Performance - The company reported a net income of $7.91 per share for the quarter, down from $9.16 per share a year earlier [2]. - Consolidated revenues increased by 10.7% to $17.7 million from $16 million in the prior-year period, driven by Journal Technologies' license and maintenance fee revenue and other public service fees [3]. - Consolidated pretax income fell by 5.4% to $14.9 million from $15.7 million in the prior-year period, with net income decreasing to $10.9 million from $12.6 million [4]. Revenue Breakdown - Journal Technologies saw a pretax income increase of $0.1 million to $0.5 million, supported by a $1.5 million rise in operating revenues, although higher operating expenses of $1.4 million partially offset these gains [5]. - The increase in revenue was primarily attributed to software-related revenues, while consulting fees declined by $0.7 million [3][7]. Non-Operating Income - Non-operating income decreased by $1 million to $14.2 million, influenced by lower unrealized gains on marketable securities and a decline in dividend and interest income [6][7]. Tax Impact - The income tax provision for the quarter was $4 million, resulting in an effective tax rate of 26.9%, which contributed to the decline in net income compared to the prior-year period [8]. Marketable Securities - As of December 31, 2024, the company held marketable securities valued at $372.1 million, with net pretax unrealized gains of $233 million and a deferred tax liability of $60.8 million related to these unrealized gains [9].