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Trueblue Reports 18% Q3 Revenue Drop, Anticipates Higher Demand in Certain Sectors

EditorVenkatesh Jartarkar
Published 10/24/2023, 09:27 AM
© Reuters.
TBI
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TrueBlue Inc (NYSE:TBI) reported a decrease in its third-quarter revenue by 18%, falling to $473 million from $576 million recorded in the same period last year. The company attributes this decline to challenging market conditions, according to its quarterly earnings report released Today. This is in line with the InvestingPro data, which indicates a revenue growth of -10.58% for the last twelve months ending 2023.Q2. Despite these hurdles, TrueBlue is witnessing signs of demand stabilization and anticipates an upswing in some sectors.

The company's strategy revolves around disciplined pricing and cost efficiency, aiming to maintain operational and balance sheet strengths. This approach is expected to provide financial flexibility amidst the current market conditions. A noticeable reduction in both assets and liabilities was recorded from December 2022 to September 2023. This aligns with the InvestingPro Tip that highlights the company's moderate level of debt and its liquid assets exceeding short-term obligations.

For the quarter ending September 24, 2023, TrueBlue reported a net loss of $11,622, a significant shift from the net income of $55,228 seen in the same quarter of the previous year. The company has scheduled a webcast discussion for Monday to delve into these results and provide forward-looking insights. The InvestingPro data shows a negative PEG Ratio of -0.34, indicating that the market is anticipating slower growth for the company.

In other earnings news, diversified technology giant 3M outperformed expectations in its Q3 results, leading to a nearly 5% surge in pre-market shares. Despite a 3.6% YoY decrease in revenue due to lower organic sales, strong operational execution and risk reduction efforts resulted in a 25% YoY increase in operating cash flow.

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The company reported an EPS of $2.68, exceeding estimates by $0.34, and revenue of $8.3 billion that surpassed estimates by $280 million. For the full fiscal year 2023, 3M projects an adjusted EPS between $8.95 and $9.15, marking a significant increase over their prior outlook.

The company also expects adjusted sales growth at -5%, with adjusted operating cash flow projected between $6.5 billion and $6.9 billion, exceeding previous expectations. Despite the 23.5% drop in share price over the past year, The Street rates 3M as 'Hold', with an average price target of $112.50, indicating a potential 31.4% upside.

TrueBlue's share price has been under significant pressure, with the InvestingPro data showing a 1-year price total return of -36.85%. The company is trading near its 52-week low, according to InvestingPro Tips, and its fair value, as per InvestingPro, is estimated at $15.72, compared to its closing price of $13.91. For investors seeking more insights like these, InvestingPro offers additional tips on its platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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