NYSE$TR

Tootsie Roll Industries Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Tootsie Roll Industries' Q3 2020 earnings decreased due to the Covid-19 pandemic.

Tootsie Roll Industries reported a decrease in net sales and net earnings for Q3 2020, primarily due to the adverse effects of the Covid-19 pandemic. Net sales decreased by 14%, and net earnings decreased by 16% compared to Q3 2019.

  • Net sales for the third quarter of 2020 were $156,962,000, a 14% decrease compared to $181,913,000 in the third quarter of 2019.
  • Net earnings for the third quarter of 2020 were $24,673,000, a decrease compared to $29,854,000 in the third quarter of 2019.
  • Net earnings per share for the third quarter of 2020 were $0.37, compared to $0.44 in the third quarter of 2019.
  • The decline in sales and lost profit margin was the primary driver of the decrease in net earnings, with lower sales volumes impacting plant manufacturing overhead costs and gross profit margins.

Headline financials

Total Revenue

$158M

Previous: $183M-13.6%
EPS (adj)

$0.36

Previous: $0.44-18.2%
Capital Expenditures

-$11.4M

Previous: -$14.2M+19.3%
Free Cash Flow

$13.2M

Previous: $15.7M-15.6%
Net Income

$24.7M

Previous: $29.9M-17.4%
Operating Income

$25.5M

Previous: $36M-29.2%
Gross Profit

$58.4M

Previous: $69.6M-16.1%
Cash & Equivalents

$108M

Previous: $87.4M+23.9%
Total Assets

$982M

Previous: $982M-0.0%

Revenue & EPS history

Tootsie Roll · Revenue · Quarterly

$158M

Q3 2020-13.6%vs Q3 2019

Forward guidance

The company anticipates the adverse trend subsiding in fourth quarter 2020 but is unable to determine the full effects of Covid-19 on its sales and net earnings for the balance of 2020 and in 2021.

Tailwinds

  • The Company is well positioned to return to higher sales and profits when the adverse effects of the Covid-19 pandemic subside.
  • Focused on the longer term.
  • Continuing to make investments in plant manufacturing operations to meet new consumer and customer demands.
  • Achieve product quality improvements.
  • Increase operational efficiencies and provide genuine value to consumers.

Headwinds

  • Due to the adverse effects of the Covid-19 pandemic on the Company’s business and the overall economy, the Company has continued to experience declines in customer orders and sales in third quarter 2020.
  • This trend has had a significant adverse effect on net sales and net earnings in second and third quarter 2020.
  • The effects of Covid-19 pandemic are unprecedented.
  • The Company is unable to determine its effects on its sales and net earnings for the balance of 2020
  • The Company is unable to determine its effects on its sales and net earnings in 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.2%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

46%

31 / 67 earnings

Positive

+4.0%

Q3 2023

Best reaction

-6.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+2.8%-4.3%
Q3 2025-6.8%-15.2%-8.5%
Q1 2025+2.8%+1.2%+9.3%
Q4 2024-1.0%-1.1%+0.4%
Q3 2024+0.7%+2.2%+11.5%
Q2 2024-0.9%-2.5%+9.5%
Q1 2024-0.7%-1.1%-3.7%
Q4 2023+0.6%+1.1%+2.0%
Q3 2023+4.0%+5.5%+17.2%
Q2 2023-2.0%-2.8%-9.7%
Q1 2023+1.7%-2.5%-0.2%
Q4 2022-3.1%+1.5%+1.6%
Q3 2022-1.8%+1.0%+10.0%
Q2 2022+1.4%+2.9%+7.8%
Q1 2022-2.6%-2.5%-9.4%
Q4 2021+0.7%+1.3%+4.5%
Q3 2021+1.1%+2.9%+1.6%
Q2 2021-2.1%+1.4%-6.6%
Q1 2021-2.0%-3.8%-4.8%
Q4 2020-4.3%+0.2%+11.8%
Q3 2020+0.7%+4.9%-0.2%
Q2 2020-4.3%-3.2%-1.2%
Q1 2020+0.6%-1.3%-5.3%
Q4 2019-1.0%+0.4%+7.2%
Q3 2019+1.0%-1.0%+1.7%
Q2 2019-1.9%+1.4%-0.6%
Q1 2019+1.8%-0.6%+2.7%
Q4 2018-0.3%+0.4%+1.7%
Q3 2018+3.5%+1.3%+14.8%
Q2 2018+1.0%-0.3%-2.2%
Q1 2018+0.0%+0.5%-1.2%
Q4 2017+1.6%+1.8%-9.0%
Q3 2017-2.5%-3.6%-0.4%
Q2 2017+0.8%-0.1%-1.4%
Q1 2017+2.5%-1.6%-6.9%
Q4 2016+0.4%-1.6%+3.7%
Q3 2016+1.7%+1.4%+9.9%
Q2 2016-0.2%-2.0%+0.3%
Q1 2016+1.4%
Q4 2015-0.7%
Q3 2015-0.7%
Q2 2015-1.6%
Q1 2015-0.3%
Q4 2014+0.4%
Q3 2014+0.2%
Q2 2014+0.2%
Q1 2014-2.2%
Q4 2013-1.2%
Q3 2013+2.1%
Q2 2013-0.6%
Q1 2013-2.3%
Q2 2012+2.2%
Q4 2012+0.8%
Q3 2012-1.7%
Q1 2012+1.3%
Q2 2011-1.0%
Q4 2008-1.0%
Q4 2011-1.0%
Q3 2011+2.2%
Q1 2010+0.5%
Q1 2011+0.5%
Q2 2010-2.0%
Q4 2010-2.0%
Q3 2009-1.0%
Q3 2010-1.0%
Q4 2009-0.3%
Q2 2009-0.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro