Earnings Analysis for G
Revenue Analysis:
Total and Operating Revenue: G’s total revenue showed a gradual increase over the quarters from $1,089,319,000 in 2023-03-31 to $1,146,253,000 in 2023-12-31. Operating revenue has mirrored this growth, indicating consistency in G’s operational performance.
Gross Profit: Gross profit has similarly increased from $370,241,000 in 2023-03-31 to $407,554,000 in 2023-12-31, improving marginally each quarter which suggests effective pricing strategy and market placement.
Cost Management:
Cost of Revenue: Cost of revenue was highest in 2023-12-31 at $738,699,000, reflecting likely increases in operational scale or input costs. However, this is managed efficiently given the consistent growth in gross profit.
Operating Expense: Operating expenses were consistently in the range of $224,327,000 to $244,940,000 across the quarters. This shows a controlled spending relative to revenue growth.
Total Expenses: Follow a similar pattern to operating expenses, staying relatively aligned with revenue growth and showing effective expense management.
Profitability Analysis:
EBITDA: EBITDA has shown a steady increase from $180,040,000 to $202,331,000 through the period, demonstrating increased profitability and efficient management.
Operating Income: Operating income increased from $145,914,000 to $162,614,000 throughout the fiscal year, which indicates solid operational performance.
Pretax Income: Pretax income grew from $138,475,000 in 2023-03-31 to $158,474,000 in 2023-12-31, evidencing healthy profit before tax which is a positive indicator for the core business strength.
Net Income: Net income grew notably from $106,101,000 to $291,309,000 across the fiscal quarters. This significant increase reflects well on the overall economic condition and the effective tax strategies of the company.
Cash Flow Indicators:
Reconciled Depreciation: Reconciled depreciation numbers were consistent, evidencing systematic capital asset management.
Interest Expense: Interest expenses showed a small increase, which might be indicative of higher borrowings necessary to fuel growth.
Taxation:
Tax Rate: The effective tax rate varied slightly from 0.234 to 0.3 over the period.
Tax Provision: Tax provisions increased substantially, which could affect the net earnings but also suggests higher earnings before tax.
Tax Effect of Unusual Items: This was variable, indicating one-time gains or losses that impacted tax calculations.
Shareholder Metrics:
Diluted and Basic EPS: Both Diluted and Basic EPS have shown an uptrend which is beneficial for shareholders. Particularly, an increase in EPS from 0.57 to 1.59 reflects a strong earnings improvement.
Average Shares: There have been minimal changes in average shares, suggesting no major buybacks or dilutions in the period.
Net Income Available to Common Stockholders: This has consistently grown, benefiting all shareholders.
Conclusion:
G has shown a robust performance with increasing revenue, controlled costs, and improved profitability. Shareholders should be optimistic given the steady growth in EPS and thorough capital management reflected in the depreciation expenses. G appears to manage its tax liabilities effectively and maintains a strong balance sheet overall. Investors should view G as a potentially strong candidate for portfolio inclusion based on consistent financial performance.