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National Research's Q4 Earnings Drop Y/Y, Stock Falls 9%

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Shares of National Research Corporation (NRC - Free Report) have declined 9.1% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 0.6% decline over the same time frame. Over the past month, the stock has declined 7.4% compared with the S&P 500’s 0.4% growth.

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National Research reported earnings per share of 28 cents in the fourth quarter of 2024, down from 36 cents in the corresponding period last year. 

The company reported revenues of $36.9 million for the fourth quarter of 2024, a decrease from $38 million in the prior-year quarter. Net income for the quarter declined to $6.6 million from $8.9 million in the year-ago quarter.

Total operating expenses increased to $27.3 million from $26.3 million, primarily driven by higher direct expenses and selling, general, and administrative (SG&A) costs. Operating income fell to $9.6 million from $11.7 million, reflecting the impact of higher costs and lower revenues.

Other Key Business Metrics

The company's total recurring contract value stood at approximately $133.2 million on Dec. 31, 2024. Net indebtedness (total borrowing minus cash and cash equivalents) was around $58.5 million at the end of the quarter.

Interest expenses increased to $0.7 million, up from $0.3 million in the prior-year quarter.

Factors Influencing Performance

Revenue declines and margin compression were key contributors to NRC’s lower earnings performance in the quarter. A modest increase in operating expenses, particularly in SG&A costs, weighed on profitability. Additionally, a significant rise in interest expenses further pressured net income.

Other Developments

During the quarter, NRC continued its capital allocation strategy through share repurchases and dividend distributions. NRC repurchased approximately 393,000 shares for around $7.3 million and paid a quarterly dividend of 12 cents per share, totaling approximately $2.8 million.


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