AstroNova Earnings Perspective: Return On Invested Capital


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


According to Benzinga Pro, during Q3, AstroNova (NASDAQ:ALOT) earned $296.00 thousand, a 91.43% increase from the preceding quarter. AstroNova's sales decreased to $28.86 million, a 3.31% change since Q2. AstroNova earned $3.45 million, and sales totaled $29.84 million in Q2.

Why Is ROIC Significant?

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Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q3, AstroNova posted an ROIC of 3.75%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q3, AstroNova posted an ROIC of 3.75%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For AstroNova, the positive return on invested capital ratio of 3.75% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Analyst Predictions

AstroNova reported Q3 earnings per share at $0.01/share, which did not meet analyst predictions of $0.06/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: EarningsBZI-ROCE