Eros (NYSE:EROS) reported earnings for the Indian film company’s fiscal first quarter of 2020, and the results are hitting EROS stock hard on Tuesday. This includes its per-share earnings coming in at 3 cents and revenue of $43.5 million. For comparison, Wall Street was looking for earnings per share of 12 cents and revenue of $66.74 million for the period.
Let’s take a closer look at the most recent Eros earnings report.
- EPS for the quarter was an improvement over per-share losses from the same time in fiscal 2019.
- EROS’ revenue for the quarter was down 27.74% from $60.20 million in its fiscal first quarter of 2019.
- Operating income of $1 million was a 90.38% drop from the $10.4 million reported during the same time last year.
- The Eros earnings report also sees operating profit margin for the quarter come in at 2.3%.
- That’s a drop from the company’s operating profit margin of 17.2% from the same period of the year prior.
A statement in the Eros earnings report reads as follows.
“We are on the cusp of completing our transformation from the Film Studio model into a Digital-led OTT business with traditional Studio offerings and capabilities. While this will have an impact on near-term revenues, principally to our syndication business in the overseas markets, this will increase the premium nature of our content and ultimately increase ARPUs and loyalty of our customers.”
The Eros earnings report also includes an outlook for its fiscal full year of 2020. This has it expecting revenue to range from $200 million to $220 million for the year. Unfortunately for EROS stock, Wall Street is estimating revenue of $279.36 million for the year.
EROS stock was down 10.35% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
