Shares of Value Line, Inc. VALU have declined 2% since the company reported its earnings for the quarter ended April 30, 2025. This compares to the S&P 500 index’s 2.4% growth over the same time frame. Over the past month, the stock has declined 3.4% versus the S&P 500’s 0.4% change, underperforming the broader market both on an immediate post-earnings basis and more broadly over the past four weeks.
Value Line’s earnings per share (EPS) declined to 42 cents for the fourth quarter of fiscal 2025 from 51 cents in the prior-year quarter.
Net income came in at $4 million, down 17.4% from $4.8 million in the same quarter last year. Operating income was also lower at $0.8 million compared to $1.5 million in the prior-year quarter.
Despite these declines, for the full fiscal year 2025, Value Line reported EPS of $2.20, up 8.9% from $2.02 in fiscal 2024. This improvement was largely driven by a significant 37.9% increase in non-voting revenues and non-voting profit interests from EULAV Asset Management Trust (EAM), which rose to $18.3 million from $13.3 million in the prior year.
For the full year ended April 30, 2025, Value Line’s income from operations decreased 34.5% to $6 million, down from $9.1 million the prior year.
Operating expenses rose modestly by 2.6% year over year to $29.1 million. However, this was more than offset by strong performance in investment gains, which increased by 17.1% to $3.2 million. The Company’s publishing segment, its only reportable segment, experienced continued challenges, particularly in its copyright revenue stream, which declined amid broader stock market trends.
Value Line, Inc. Price, Consensus and EPS Surprise
Value Line, Inc. price-consensus-eps-surprise-chart | Value Line, Inc. Quote
Management Commentary
Management acknowledged the decline in operational income and attributed it to decreased copyright revenues and continued cost pressures. However, they emphasized the robust contribution from EAM, whose revenue-based distributions to Value Line substantially cushioned overall profitability. The Company remains focused on maintaining competitiveness in digital products and emphasized the importance of ongoing investment in digital transformation to offset the long-term decline in print revenue.
Executives also noted that EAM’s assets under management (AUM) grew to $4.7 billion as of April 30, 2025, a 12% increase from $4.2 billion the previous year. This contributed to the boost in earnings from Value Line’s non-voting economic interests in EAM.
Factors Influencing the Headline Numbers
The mixed earnings result was shaped by several opposing forces. Declines in subscription-based and copyright-related income weighed on operational results. The company noted continued pressure on retail print subscriptions, a trend they expect to persist. Despite this, digital revenue streams are gaining ground, though not yet at a pace to fully replace lost print revenues.
On the other hand, the significant boost in non-voting revenues and profits from EAM helped improve net income. The gain was attributed to both rising assets under management and improved investment performance.
Investment returns from Value Line’s proprietary portfolio also saw an uptick, contributing further to bottom-line growth.
Macroeconomic factors also played a role. In the MD&A section, management cited geopolitical uncertainties, trade tensions, and a cooling U.S. economy as contextual headwinds. However, they also acknowledged a resilient job market and easing inflation in spring 2025, which supported broader equity markets and indirectly benefited their asset management business.
Other Developments
During the fiscal quarter, Value Line continued its share repurchase program. The company repurchased 4,961 shares in the open market at an average price of $36.40 per share during the February to April 2025 period. As of April 30, 2025, approximately $0.8 million remained under the $3 million buyback authorization approved in October 2022.
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This article originally published on Zacks Investment Research (zacks.com).