TSRI stock rose more than 40% in early trading on January 11, 2022, after the company reported record revenue.
TSR, Inc. Reports Record Revenue for the Second Quarter Ended November 30, 2021
On January 10, 2022, TSR, Inc. (Nasdaq: TSRI), a provider of information technology consulting and recruiting services, announced financial results for the second quarter ended November 30, 2021.
For the quarter ended November 30, 2021, revenue increased 48.5% to $23.9 million as compared to revenue of $16.1 million in the prior year second quarter. Net income attributable to TSR for the current quarter was $243,000, or $0.12 per diluted share, as compared to net loss of ($247,000), or $0.13 per diluted share in the prior year quarter. The Company ended the quarter with a strong balance sheet with $6.3 million in cash and less than $50,000 in debt, resulting in net cash in excess of $6.2 million, or $3 per share.
Thomas Salerno, our CEO, stated “The demand for staffing services remained robust in the quarter. Our revenue increased 48.5% for the second quarter due to organic growth from new and existing customers. Operating income for the current quarter was $415,000 as compared to an operating loss of $223,000 in the prior year quarter. If our current trends continue, we expect operating income to continue to grow as we leverage selling, general and administrative expenses.”
Both the second quarter of fiscal 2022 and the second quarter of fiscal 2021 contained results from the acquisition of Geneva Consulting Group, Inc. (“Geneva”) which closed on September 1, 2020.
“TSR’s operational team as well as the hundreds of high-quality consultants working with our clients are all doing a fantastic job. We spent the first part of the 2021 calendar year building the team and modernizing several of our back office systems and we are now seeing some of the benefits of those investments with both sequential growth in revenues and solid operating income. We believe our strong balance sheet and largely untapped credit facility provide us the ability to further accelerate revenue and earnings growth through acquisitions.”
Founded in 1969, TSR, Inc. is a leading staffing company focused on recruiting Information Technology professionals for short- and long-term assignments, permanent placements, and project work. For over 50 years, TSR has successfully served clients in banking, asset management, pharmaceuticals, insurance, health care, public utility, publishing and other industries. We provide candidate screening, timely placement and a real understanding of the right skill sets required by our clients. To learn more, please visit our website at https://www.tsrconsulting.com
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📈 TSR Stock Technical Analysis
The long term trend is still negative, but the short term trend is neutral. It is advised to wait a little bit longer to see how this turns out. Volume is considerably higher in the last couple of days. TSRI is one of the better performing stocks in the IT Services industry, it outperforms 81% of 151 stocks in the same industry.
There is support at 11.80 from a horizontal line in the weekly time frame. There is also support at 11.15 from a trend line in the weekly time frame. Finally, there is a support zone ranging from 9.09 to 9.11. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
The technical rating of TSRI is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when TSRI stock consolidates and is a good long entry.