Hurco Companies (HURC) reported its fiscal 2025 Q2 earnings on Jun 06th, 2025. The company missed expectations with a net loss of $4.06 million, representing a 3.6% increase from the previous year. Hurco's guidance remains focused on strengthening its balance sheet and returning to profitability amid current market challenges. CEO Greg Volovic emphasized the company's commitment to sustaining investments in product development to meet changing customer needs, indicating a strategic commitment to future growth.
RevenueHurco Companies experienced a decline in total revenue by 9.5% in 2025 Q2, totaling $40.87 million, compared to $45.17 million in 2024 Q2. The segment breakdown includes $31.66 million from Computerized Machine Tools, $657,000 from Computer Control Systems and Software, $6.23 million from Service Parts, and $2.32 million from Service Fees.
Earnings/Net IncomeHurco Companies reported a loss of $0.62 per share in 2025 Q2, slightly worse than the $0.61 per share loss in 2024 Q2. The company's net loss widened to $4.06 million, marking a 3.6% increase from the $3.92 million loss recorded in 2024 Q2. The EPS reflects continued financial challenges.
Price ActionThe stock price of
dropped 4.86% during the latest trading day, saw a decline of 4.99% over the most recent full trading week, and decreased 3.14% month-to-date.
Post-Earnings Price Action ReviewAnalyzing the post-earnings strategy for Hurco Companies (HURC) shares reveals a loss of 1.64% over the past three years when buying shares after a revenue increase on the financial report release date and holding for 30 days. This approach has consistently underperformed, indicating that the market does not reward Hurco’s revenue boosts with sustained share value increases. Investors may need to reassess the timing and conditions of their trading strategies concerning Hurco's financial announcements. This historical trend underscores the importance of understanding market reactions and potential volatility following earnings disclosures. Shareholders should consider broader market conditions and Hurco’s strategic initiatives when making investment decisions, as past performance has shown limited upside in short-term trading post-earnings report release.
CEO CommentaryGreg Volovic, Chief Executive Officer, emphasized the significant uncertainty in global markets impacting sales forecasts in the manufacturing sector. He highlighted the commitment to executing their long-term strategy while reinforcing the financial foundation through deliberate cost reductions and cash flow improvements. Volovic affirmed that Hurco remains dedicated to investing in product development, ensuring alignment with evolving market demands, and positioning the company to respond effectively as market momentum returns.
GuidanceThe company remains focused on strengthening its balance sheet and aims for a return to profitability despite current market challenges. Volovic expressed confidence in sustaining investments in product development to enhance their offerings and meet changing customer needs, indicating a strategic commitment to future growth.
Additional NewsRecently, Hurco Companies announced the suspension of its quarterly cash dividend as of June 2024 to enhance financial flexibility amid market uncertainties. This strategic move underscores the company's focus on preserving cash resources during challenging economic conditions. Additionally, Hurco has continued to expand its technological capabilities, showcasing innovations at the 2024 International Manufacturing Technology Show (IMTS), including advancements in AI and mechanical technology to drive future manufacturing processes. These efforts highlight Hurco's commitment to pioneering new solutions and maintaining its competitive edge. Furthermore, the company has engaged in strategic collaborations with industry leaders like Kawasaki Robotics, emphasizing turnkey, industrial-grade robotic solutions to bolster manufacturing efficiencies. This collaboration represents Hurco’s effort to leverage automation in response to a tightening labor market.
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