Why did SXTC's EPS drop to zero in recent quarters?

The EPS of China SXT Pharmaceuticals, Inc. (SXTC) dropped to zero in recent quarters due to a combination of factors: 1. **Revenue Decline**: The company's total revenue for the most recent quarter ending on September 30, 2024, was $1.43 million. This is a significant decrease from the previous year, indicating a decline in sales and profitability. 2. **Net Income**: The net income for the same period was $181,869, which is a positive figure but significantly lower than the earnings of the previous year. This suggests that the company is profitable but at a much lower level. 3. **Share Consolidation**: The company underwent a share consolidation, converting every eight shares into one. Such actions can lead to a temporary dilution of earnings per share as the number of shares outstanding increases. 4. **Market Challenges**: The pharmaceutical industry is highly competitive, and SXTC faces challenges in a rapidly changing market. The company's stock price has experienced a significant decline, reaching a 52-week low, which can impact investor confidence and lead to a decrease in EPS as the market values the company lower. In conclusion, the drop in SXTC's EPS to zero is primarily due to a combination of revenue decline, net income decrease, share consolidation, and market challenges. These factors collectively contribute to a lower earnings per share.