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Mar 31, 2023
A-Mark Precious Metals Q3 2023 Earnings Report
A-Mark Precious Metals reported an increase in revenue and gross profit, driven by its integrated platform and Direct-To-Consumer segment, while earnings per share saw a slight decrease.
Key Takeaways
A-Mark Precious Metals reported a 10% increase in revenue to $2.317 billion and a 5% increase in gross profit to $75.5 million for the fiscal third quarter ended March 31, 2023. Diluted earnings per share decreased slightly to $1.46, and the company repurchased 335,735 common shares for $9.8 million.
Revenue increased 19% quarter-over-quarter, and gross profit increased 18% quarter-over-quarter.
Direct-To-Consumer segment contributed 57% to consolidated gross profit, with a 124-basis point increase in the segment’s gross margin percentage year-over-year.
Silver Towne Mint achieved ISO 9000:2015 certification, expanding its product reach to Individual Retirement Accounts (IRAs).
Company repurchased 335,735 common shares for $9.8 million
A-Mark Precious Metals
A-Mark Precious Metals
A-Mark Precious Metals Revenue by Segment
Revenue by Segment
Direct-to-Consumer Revenue
CapyFin.com Forward Guidance
A-Mark believes that its diversified business model and access to inventory will allow it to further capitalize on the heightened demand for precious metals and is continuing to evaluate growth opportunities that will further enhance its platform and contribute to its business.
Positive Outlook
- Diversified business model
- Access to inventory
- Heightened demand for precious metals
- Core business remains strong
- Evaluating growth opportunities
Challenges Ahead
- Failure to execute the Company’s growth strategy
- Changes in the current international political climate
- Potential adverse effects of the current problems in the national and global supply chains
- Increased competition for the Company’s higher margin services, which could depress pricing
- Potential negative effects that inflationary pressure may have on our business