DJCO June-Quarter Earnings Rise Y/Y on Tech Growth, Stock Up 1%

Shares of Daily Journal Corporation DJCO have gained 0.8% since the company reported its earnings for the quarter ended June 30, 2025. This compares with the S&P 500 index’s -0.2% change over the same period. Over the past month, the stock has rallied 14%, markedly outpacing the S&P 500’s 2.5% increase.Daily Journal reported net income of $10.47 per share compared to $16.96 a year earlier — a decrease of 38% year over year. Quarterly revenues of $23.4 million denoted a 34% rise from $17.5 million in the prior-year quarter. This growth was driven by strong performances in licensing and maintenance fees, consulting services, and public service fees.Net income, however, declined to $14.4 million compared to $23.4 million a year earlier. The decline in earnings despite revenue expansion reflected lower gains on DJCO’s securities portfolio compared to last year’s quarter.Daily Journal Corporation Price, Consensus and EPS Surprise Daily Journal Corporation price-consensus-eps-surprise-chart | Daily Journal Corporation QuoteDJCO’s Other Key Business MetricsDaily Journal’s Journal Technologies segment remained the core growth driver, contributing roughly 79% of revenues. Segment revenues climbed 44% to $18.5 million, up from $13.1 million a year ago. Licensing and maintenance fees advanced 11% to $8 million, consulting fees nearly doubled to $6.5 million, and public service fees surged 63% to $4 million. This was partly attributable to increased e-filing activity.Conversely, the Traditional Business segment generated $4.9 million in revenues, up modestly from $4.4 million in the prior-year period. Advertising revenues rose 10% to $2.8 million. Pretax income for the Traditional Business turned negative, recording a $0.9 million loss versus a $0.7 million profit last year, due to higher personnel and compensation accrual costs.Management CommentaryManagement emphasized that much of the growth stemmed from the successful execution of customer projects at Journal Technologies. The subsidiary continues to prioritize product upgrades, enhanced user experiences and operational efficiencies. However, Daily Journal noted that costs tied to additional staffing, contractor services and third-party hosting fees weighed on operating margins.On the Traditional Business side, revenues were supported by increased legal and trustee sale advertising, but profitability eroded as higher employee benefit and supplemental compensation expenses outpaced revenue gains.Factors Influencing Headline NumbersThe quarter’s top line benefited from robust demand for Journal Technologies’ software and services, particularly consulting and public service fees. However, the key swing factor for net income was the company’s investment portfolio. Daily Journal reported $11.5 million in unrealized securities gains for the quarter, sharply down from $28 million a year earlier. This reduced the contribution from non-operating income, dampening earnings despite higher operating revenues.Operating expenses also rose 23% year over year to $20.2 million, driven largely by salary adjustments, new hires and increased legal costs. This exerted further pressure on operating income, which nevertheless grew to $3.2 million compared with $1.1 million in the year-ago quarter.Other DevelopmentsDaily Journal continued to reduce its reliance on margin borrowings secured by its securities portfolio. At June 30, 2025, the balance on the investment margin loan stood at $25 million, down from $27.5 million at fiscal year-end 2024.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Daily Journal Corp. (S.C.) (DJCO): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks