Shares of SigmaTron International, Inc. (SGMA) tanked nearly 50% on Monday morning after the company announced its results for the first quarter.
SGMA is currently trading at $3.9890, down $3.5610 or 47.1656%, on the Nasdaq. The stock opened its trading at $4.3000 after closing Friday's trading at $7.5500. The stock has traded between $2.0700 and $7.8900 in the past 52-week period.
Revenues from continuing operations decreased 7 percent to $98.1 million in the first quarter, compared to $105.2 million for the same quarter in the prior year.
Net income from continuing operations for the first quarter was $0.3 million, compared to net income of $3.1 million for the same quarter in the prior year.On a per share basis, income continuing operations for the quarter ended July 31, 2023 was $0.04, compared to $0.50 income per share for the same quarter in the prior year.
Commenting on SigmaTron's first quarter fiscal 2024 results, CEO Gary Fairhead said, "I'm disappointed to report what is essentially a breakeven quarter to begin our fiscal 2024. Our pre-tax profit was $107,964 for the quarter. As mentioned in our fiscal year-end press release, there was a significant amount of uncertainty with the general economy and our customers. It appears that the effort by the Federal Reserve to slow inflation has weakened the economy which has resulted in lower demand from some of our customers. We have certain customers whose demand remains quite strong and others who have experienced short-term softness. I'm expecting this uncertainty to continue through calendar year-end as those customers are indicating to us that they view this softness as a short-term condition and expect their requirements to pick up by year-end."
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