B. Riley Financial (NASDAQ:RILY) stock is taking a beating on Monday after the financial services company provided its latest preliminary earnings results to investors.
These preliminary results include a net loss per share of $14 to $15 per share. This is due to its net loss for the quarter coming in between $435 million and $475 million.
These losses come as the company expects an impairment charge of $330 million to $370 million from its investment in Freedom VCM. It’s also expecting an impairment charge of $28 million from Targus and $25 million from a valuation allowance for deferred income taxes.
B. Riley Financial chairman and co-CEO Bryant Riley said the following about these results:
“Our second quarter results were negatively impacted by non-cash losses, the overwhelming majority of which relate to performance of our investment in Franchise Group, Inc. (“FRG”) and our Vintage Capital loan receivable, which is primarily collateralized by equity interests in FRG. The substantial write-down during the quarter was driven by a confluence of recent events, including the impact of a meaningfully weaker consumer spending environment on FRG’s businesses and its investments.”
More Bad News for RILY Stock
B. Riley Financial is taking action to ensure the strength of its balance sheet. That includes the suspension of its dividend. It will also be refocusing on its core financial services businesses.
RILY stock is down 52.1% as of Monday afternoon, with some 12 million shares traded. That’s well above its daily average trading volume of about 971,000 shares.
Below, there are plenty more stock market stories traders are going to want to read!
We have all of the hottest stock market news investors will want to know about on Monday! That includes everything happening with 60 Degrees Pharmaceuticals (NASDAQ:SXTP), Draganfly (NASDAQ:DPRO) and KeyBank (NYSE:KEY) stock today. All of this news is available at the following links!
More Stock Market News for Monday
- Why Is 60 Degrees Pharmaceuticals (SXTP) Stock Up 29% Today?
- Why Is Draganfly (DPRO) Stock Up 37% Today?
- KEY Stock Surge Alert: What’s Going On With KeyCorp Shares Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
