Stock falls 22% as company reports loss despite higher sales

  • B. Riley Financial shares fell 22% after swinging to a loss in Q3
  • The company reported a loss of $75.8 million, compared to a profit of $45.8 million in the same quarter last year
  • The loss was driven by unrealized investment losses and a non-cash impairment charge related to Targus
  • Despite the loss, B. Riley Financial saw a 48% increase in revenue from a year ago

B. Riley Financial shares took a hit as the company reported a loss in the third quarter, causing the stock to fall 22%. The loss of $75.8 million was driven by unrealized investment losses and a non-cash impairment charge related to Targus, a company B. Riley acquired last year. Despite the loss, B. Riley Financial saw a 48% increase in revenue from a year ago, largely due to retail liquidation and higher revenue from financial consulting, communications, and wealth management.

Factuality Level: 7
Factuality Justification: The article provides specific financial figures and quotes from the co-chief executive of B. Riley, which adds credibility to the information. However, it does not provide any additional sources or perspectives to verify the claims made in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about B. Riley Financial’s financial performance in the third quarter, including the swing to a loss and the reasons behind it. It mentions the impact of unrealized investment losses and a non-cash impairment charge related to Targus. The article also highlights the increase in top-line revenue. However, it lacks in-depth analysis, data, or insights into the long-term trends or antifragility of the company. It does not hold powerful people accountable or explore the consequences of decisions on stakeholders. Overall, the article provides basic information but lacks depth and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Financial shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the financial performance of B. Riley in the third quarter. However, there is no mention of an extreme event or its impact.
Public Companies: B. Riley Financial (N/A)
Private Companies: Targus
Key People: Tom Kelleher (Co-Chief Executive)

Reported publicly: www.marketwatch.com