Understanding TSR’s Risk Factors

TSR (TSRI) provides information technology and recruiting services. It recently delivered robust numbers for the first quarter of fiscal 2022.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Let’s have a look at TSR’s Q1 financials, as well as what has changed in its key risk factors that investors should know.

Boosted by new business development, organic growth, and acquisition of Geneva Consulting, TSR’s Q1 revenue jumped 57.5% year-over-year to $22.9 million. Earnings per share came in at $3.18 as compared to a net loss per share of less than $0.01 in the year-ago period.

During this period, TSR incurred a $0.58 million charge associated with the settlement of litigation with its former CEO. SG&A expenses also increased in Q1 due to an increase in headcount and expenses related to the acquisition of Geneva Consulting Group. (See Insiders’ Hot Stocks on TipRanks)

Thomas Salerno, CEO of TSR, remarked on the acquisition of Geneva, “The integration of the Geneva and TSR teams has continued to go smoothly and we believe the acquisition has helped us accelerate growth and will improve returns for shareholders. We are in the process of upgrading and modernizing several of our back-office systems that we believe will help improve efficiencies and allow the business to continue to scale.

“As we expect a gradual return to normalcy from the COVID-19 pandemic, we are guardedly optimistic of continued revenue growth in the improving business climate.”

Shares are up 67.8% over the past year.

Risk Factors

According to the new TipRanks Risk Factors tool, TSR’s top three risk categories are Finance & Corporate, Production, and Ability to Sell, each accounting for 24% of the total 21 risks identified. In the recent Q1 report, the company added one new risk factor under the Finance & Corporate risk category.

TSR highlighted that it has completed the acquisition of Geneva, and may make additional acquisitions in the future. The addition of new businesses also brings associated risks and uncertainties, and there can be no guarantee that TSR will be able to attain or maintain profitability.

The sector average Finance & Corporate risk factor is 61%.