TAYD Stock Gains 2% Despite Q3 Earnings Decline Y/Y, Backlog Grows

Shares of Taylor Devices, Inc. TAYD have gained 1.9% since the company reported its earnings for the quarter ended Feb. 28, 2025. This compares to the S&P 500 index’s 1.1% decline over the same time frame. Over the past month, the stock has gained 4.8% against the S&P 500’s 3.9% decline.

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For the fiscal third quarter ended Feb. 28, 2025, Taylor Devices reported earnings per share (EPS) of 64 cents, lower than 82 cents a year ago.

Sales of $10.6 million reflected a decline of 13.8% from $12.3 million in the prior-year quarter. Net earnings dropped 25.8% to $2 million compared to $2.7 million in the same quarter last year.

Taylor Devices, Inc. Price, Consensus and EPS Surprise

Taylor Devices, Inc. price-consensus-eps-surprise-chart | Taylor Devices, Inc. Quote

Resilient Margins Despite Lower Volume

Despite year-over-year declines in both quarterly and year-to-date sales and earnings, management emphasized the company’s ability to maintain favorable gross margins. CEO Tim Sopko attributed this to continuous improvement initiatives and strong execution amid a varying product mix. Although sales fell short of last year’s record-setting levels, Sopko noted that fiscal 2025's nine-month revenue surpassed the company’s second-highest mark set in fiscal 2023, reflecting some underlying strength.

Management Commentary Highlights Strategic Positioning

CEO Tim Sopko provided context for the earnings decline, citing macroeconomic headwinds such as high interest rates and the U.S. Government’s Continuing Resolution, which may have weighed on order timing or customer budgets. However, he underscored the benefits of Taylor Devices’ market diversification strategy and stable end markets.

The firm order backlog rose to $33.3 million at the end of February 2025, compared to $30.2 million a year earlier, suggesting healthy future demand and improved visibility into upcoming revenue. Sopko emphasized the company’s ongoing commitment to growth through investment in talent, R&D, and facilities.

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This article originally published on Zacks Investment Research (zacks.com).

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