As the trading week trudges to a close, there is no time for investors to rest on their laurels for the week. They will need to wake up and look into certain stocks which they believe may come into focus. It is quite likely that the Q.E.P. Co Inc (OTCMKTS:QEPC) may come into focus among investors today and it may be a good idea for investor to perhaps consider taking a look into it. First of all, it may be a good idea for investors to first take a look at the sort of business that the company runs before getting into the latest developments.
Trading Data
On Thursday, GKIN stock fell 4.26% to $3.15 with 6K shares, compared to its average volume of 11K shares. The stock moved within a range of $2.5800 – 3.2000 after opening trade at $3.20.
About The Company
Q.E.P. Co had actually been established back in 1979 and it functions as a distributor, manufacturer and designer of top of the class flooring as well as installation solutions. The company offers these solutions to both home improvement projects as well as commercial projects all over the world.
The company is well known for providing a wide range of specialty installation tools, adhesives, hardwood, modular carpets and luxury vinyl among others.
Q.E.P. Co., Inc. Reports Fiscal 2023 First Quarter Financial Results
Yesterday, the company had come into the news cycle after it announced its financial results for the first fiscal quarter of 2023 which had ended on May 31, 2022. It may be a good time for investors to take a look at the company’s performance in order to make up their minds about its situation. In the aforementioned quarter, the company managed to bring in net sales to the tune of as much as $117.1 million and that reflected a year on year rise of 2.3% from the revenues of $114.4 million in the first fiscal quarter of 2022.
The rise in net sales was brought about by the year over year rise that had been implemented by Q.E.P. Co owing to the inflationary pressures that had been experienced. The prices had been offset not only by lower volume of sales but also by the currency translation of the United States dollar during the period under consideration. The Executive Chairman of Q.E.P. Co, Lewis Gould spoke about the situation at the company at this point in time.
He noted that significant inflationary pressures continued to have a negative effect on Q.E.P. Co and had brought about considerable disruption to the global supply chain. Although the company had raised prices at an unprecedented rate, it has been unable cushion the impact of the rise in expenses in terms of higher labour costs, freight charges, higher product prices and other related costs.
Due to the onset of this particular situation, the company has decided to keep a close eye on those product lines which have continued to be profitable. Gould went on to add that Q.E.P. Co was perfectly aware of the volatile environment that the company is operating and hence, it was possible for the company to keep a tight vigil on its operations and focus on bring about improvement in its operating expenses as well as product lines.
Key Quote
Lewis Gould, Executive Chairman, commented on the Company’s results, “We continue to be adversely impacted by significant inflationary pressures and disruption to the global supply chain. Despite implementing an unprecedented series of price increases, we continue to lag the impact of elevated inbound freight rates, along with higher product, labor and other operating costs. In light of these headwinds, the Company continues to closely monitor and take appropriate actions on marginally profitable products, product lines and operating expenses.”
Technical Data
QEPC stock is trading below the 20-Day and 50-Day Moving averages of $20.43 and $21.49 respectively. Moreover, the stock is trading below the 200-Day moving average of $21.59. The company has a total market capitalization of $64.99. The stock is up 11% over the past 3-month.
