Higher Expenses and Revenue Fall-off Weakens Profit at AMG

• Net profit dipped 9.8% for the first three months ended November 2019 ending the period at $14.82Mn (EPS: $0.03), $1.57Mn lower than the corresponding period in 2018.
• A decline of 10.4% (or $22.32Mn) in revenue coupled with a $10.5% (or $3.14Mn) increase in expenses were the primary drivers of the dip in the net profit. In particular, administrative (up 14.2% or $2.86) and financial (+72.1% or $985.46K) were the main forces behind the upward movement in total expenses.
• The stock has declined 1.4% since the start of the year, and closed trading at $2.08 on Tuesday. The stock currently trades at a P/E of 17.3x earnings which is below the Junior Market Manufacturing average of 21.4x earnings.

(Source: AMG Financials)