Revenue Analysis
Over the course of the last three fiscal quarters, Total Revenue and Operating Revenue have shown a slight variation. In the most recent period reported in 2024-03-31, the Total Revenue was 1,481,000,000 USD, showing a modest decline from the 1,487,000,000 USD reported in 2023-12-31 and an increase from the 1,520,000,000 USD in 2023-09-30.
Cost Management
The company’s Selling General and Administration expenses were highest in 2024-03-31 at 710,000,000 USD, compared to 642,000,000 USD in 2023-12-31 and 709,000,000 USD in 2023-09-30. This data indicates a slightly increasing trend in operational expenses.
Profitability Analysis
Looking at profitability, the Net Income for the period ending 2024-03-31 was 219,000,000 USD, substantially higher than 65,000,000 USD and 302,000,000 USD seen in 2023-12-31 and 2023-09-30, respectively. The Pretax Income followed the same trend, showing significant variation and reaching 278,000,000 USD in the latest period from just 57,000,000 USD in 2023-12-31.
Cash Flow Indicators
The Reconciled Depreciation was reported at 24,000,000 USD for 2024-03-31, a decrease compared to 28,000,000 USD in 2023-12-31 and 35,000,000 USD in 2023-09-30. Interest Expense also showed a sharp increase in the latest reporting period to 1,157,000,000 USD from 1,129,000,000 USD in the previous period.
Taxation
Tax Provision was significantly higher in 2024-03-31 at 59,000,000 USD, compared to a negative provision of 8,000,000 USD in 2023-12-31 and 65,000,000 USD in 2023-09-30. The Tax Rate for Calcs was calculated at 0.21223 in the latest period, indicating variability across the periods.
Shareholder Metrics
The Diluted EPS showed an improvement in 2024-03-31 at 0.20 USD, up from 0.03 USD and 0.29 USD in the earlier periods. The Diluted Average Shares were approximately 937,011,000 in the latest period, pointing to minimal fluctuation in share count.
Conclusion
The earnings data for KEY demonstrates significant fluctuations in net income and profitability over the last year. Revenue has remained somewhat stable, but profitability improvements in the last quarter could indicate a positive outcome from management strategies or a recovery from previously incurred costs. The sharp increase in tax provisions and interest expenses are areas that may need further attention from management to maintain financial sustainability.
Appendices – Supporting Data
Data used in this analysis is from financial disclosures by KEY as of the quarters ending March 31, 2024, December 31, 2023, and September 30, 2023. All financial figures are stated in USD.