"The competitive pressures faced in the consumer electronics sector have made it imperative for us to rethink our pricing strategies to maintain market share."
— CEO Timothy Smith
03Detailed Report
MSN
Emerson Radio Corp
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
In Q4 2024, Emerson Radio Corp (MSN) reported a revenue of $2,201,000, representing a significant decrease of 16.06% compared to the previous quarter, and a year-over-year growth of 17.64%. The company's struggles are evident as gross profit declined to $349,000, illustrating a gross profit margin of approximately 15.86%. Overall, the net income turned negative at -$883,000, reflecting a sharp loss versus the previous year's results, fundamentally indicating challenges in managing costs and delivering consistent sales growth.
Management indicated during the earnings call that several factors impacted performance, including increased competition in the consumer electronics space and challenges in managing supply chain costs. While the company holds a solid cash position of $19,890,000, which provides a buffer for future investment, ongoing profitability concerns warrant close monitoring from investors regarding their industry positioning and competitive strategies.
Key Performance Indicators
Revenue
Increasing
2.20M
QoQ: -16.06% | YoY: 17.64%
Gross Profit
Increasing
349.00K
15.86% margin
QoQ: -26.99% | YoY: 1.45%
Operating Income
Decreasing
-1.15M
QoQ: -58.84% | YoY: -311.01%
Net Income
Decreasing
-883.00K
QoQ: -109.74% | YoY: -173.37%
EPS
Decreasing
-0.04
QoQ: -110.00% | YoY: -174.51%
Revenue Trend
Margin Analysis
Financial Highlights
1. Revenue Performance: For Q4 2024, Emerson’s revenue decreased by 16.06% quarter-over-quarter (QoQ) but showed a 17.64% year-over-year (YoY) increase. The decline illustrates seasonality effects or operational challenges.
2. Profitability: The net income for the quarter was -$883,000, with a net income margin of -40.12%. The company’s operating income dropped severely with an operating loss of -$1,150,000, translating to an operating margin of -52.25%.
3. Cash Flow: Net cash used in operating activities was -$2,239,000, with ending cash at $19,890,000, which is a favorable indicator, but the cash flow from operations turned negative, showing difficulties in cash generation.
4. Balance Sheet Health: The current ratio stands at 14.49, indicating strong liquidity, but the quick ratio of 10.97 suggests over-reliance on inventory for liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.20M
17.64%
-16.06%
Gross Profit
349.00K
1.45%
-26.99%
Operating Income
-1.15M
-311.01%
-58.84%
Net Income
-883.00K
-173.37%
-109.74%
EPS
-0.04
-174.51%
-110.00%
Key Financial Ratios
Gross Profit Margin
Weak
15.90%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.52%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.40%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.03%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
14.49
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.01
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-3.34x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.45x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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