Earnings Analysis for PH: Last 3 Years
1. Revenue Analysis
Total and Operating Revenue: There has been a steady increase in Total Revenue over the discussed period, starting from $4.84 billion in Q3 2023 and reaching $5.07 billion by Q1 2024. This suggests consistent growth in the company’s operating activities and market reach.
Gross Profit Margins: Gross profit has also shown a positive trend, increasing from $1.75 billion in Q3 2023 to $1.79 billion by Q1 2024. The Gross Profit Margin seems to have improved slightly, indicating better management in capping direct costs or improved sales efficiency.
2. Cost Management
Cost of Revenue: Cost of Revenue has been relatively stable, ranging between $3.09 billion and $3.28 billion. This stability shows good cost control in the core operations of the company.
Operating Expense: Operating expenses have varied but stayed within a close range from $766 million to $798 million, suggesting efficient cost management in administrative and general expenses.
Total Expenses: Total Expenses, including cost of revenue and operating expenses, consistently scaled with revenue, balancing between $3.89 billion and $4.08 billion.
3. Profitability Analysis
EBITDA: EBITDA increased from approximately $1.19 billion in Q3 2023 to nearly $1.27 billion in Q1 2024, reflecting enhanced operational efficiency and profitability.
Operating Income: Operating Income followed an increasing trend, suggesting that the company is not only generating higher revenue but is also converting more of this revenue into operational profits.
Pretax Income and Net Income: Pretax Income has shown growth, signifying robust underlying profitability. Net Income, which is the final bottom line, grew from $650.8 million in Q3 2023 to $726.6 million in Q1 2024, marking strong net earnings growth.
4. Cash Flow Indicators
Reconciled Depreciation: Reconciled Depreciation has been fairly consistent around the $220 million to $240 million mark, factoring in depreciation as a significant non-cash expense that impacts the cash flow positively.
Interest Expense: Interest Expenses noted were considerable, reflecting ongoing financial costs that impact net earnings. It remained around $120 million to $130 million throughout the periods under review.
5. Taxation
Tax Rate: The Effective Tax Rate varied slightly, generally staying around 21%, aligning with typical corporate tax rates.
Tax Provision: Tax Provision has consistently increased in line with pretax profits, reflecting the company’s growing obligations as its earnings increase.
Tax Effect of Unusual Items: This was variable and in Q1 2024 was specifically notable, affecting the tax line of the financial statements.
6. Shareholder Metrics
EPS (Diluted and Basic): Both Diluted and Basic EPS show a gradually rising trend, which is a favorable indicator for shareholders. EPS increased from 4.99 in Q3 2023 to 5.56 in Q1 2024 on a diluted basis.
Average Shares and Net Income to Common Stockholders: The number of average shares remained fairly stable, and the Net Income available to common stockholders saw an upward movement, consistent with the increase in net income.
7. Conclusion
The financial performance of PH over the last few quarters has shown consistent growth in revenue and profitability. The stability in cost management and gradual increase in net income underline a robust operational performance. The company exhibits financial soundness, making it an attractive consideration for potential investors and existing shareholders.