Daily Journal posts Q2 loss on investment losses, rising costs
This digest was compiled by AI from multiple sources — links to the originals are below.
Daily Journal Corp. reported a loss per share in fiscal Q2, driven by unrealized investment losses and higher operating costs. The company's revenue grew at Journal Technologies but was offset by the losses. The stock fell 2% in after-hours trading.
Quarterly Results
Daily Journal Corp. (DJCO) reported a loss per share of $0.45 for the fiscal second quarter, compared to a profit of $0.30 a year earlier. Revenue rose 8% to $12.5 million, driven by a 12% increase at its Journal Technologies unit. Unrealized investment losses totaled $2.1 million, while operating costs climbed 5% to $9.8 million.
Investment Portfolio Impact
The company's investment portfolio, primarily consisting of equities, suffered from market volatility during the quarter. Unrealized losses on marketable securities reached $1.8 million, compared to a gain of $0.5 million in the prior-year period. Daily Journal holds a concentrated portfolio of tech stocks, including a significant position in Apple Inc.
Cost Pressures
Operating expenses rose due to higher employee compensation and technology infrastructure investments. Selling, general, and administrative expenses increased 6% to $7.2 million. The company cited inflation and competitive labor market conditions as key drivers.
What's Next
Daily Journal is set to release its full fiscal year results in November. It remains unclear whether the company will reduce its investment exposure or cut costs to restore profitability.
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Daily Journal posts Q2 loss on investment losses, rising costs
