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Franklin Wireless Corp   (FKWL)
    Sector  Technology    Industry Consumer Electronics
   Industry Consumer Electronics
   Sector  Technology
 

Franklin Wireless Corp Reports Improved Earnings, But Caution Urged as $0.58 Million Income Tax Refund Plays Major Role

A $0.58 million in provisions on taxes, supported Franklin Wireless Corp to present $0.02 eps in the financial span ending third quarter of 2023


Published May 16 2023 / Modified May 16 2023
CSIMarket Team / CSIMarket.com


13843694113_8c5f29f4b9_zInvesting in the stock market always carries a certain degree of risk.
While some investors may be thrilled at the news of Franklin Wireless Corp's profitability for the fiscal third quarter of 2023, it is important to exercise caution and evaluate the situation before making any investment decisions.

First, it is important to note that the EPS of $0.02 per share is an improvement from the previous year, but it is still a relatively low number.
Additionally, the positive turn in earnings per share must be considered with the knowledge that the prior reporting period had negative earnings per share.


While revenue growth of 77.231% may be impressive, it is not uncommon for a company to experience fluctuations in revenue.
It is also important to consider the reason behind the surge in revenue.
In this case, it is attributed to a $0.58 million income tax refund, which may not be sustainable in the long term.

Furthermore, the bottom-line improvement from a net deficit of $-0.787 million to $0.212 million is indeed encouraging.
However, it is vital to delve deeper into the company's financial statements to understand where this improvement came from.
A single income tax refund should not be the sole reason for a company's profitability.

Finally, investors should keep in mind that the next financial earnings report is still a few months away.
While speculation and projections may be tempting, it is important to wait for more concrete information before making any investment decisions.

In conclusion, while Franklin Wireless Corp's announcement of profitability for the fiscal third quarter of 2023 may be seen as a positive sign, investors should approach the situation with caution.
It is crucial to diligently examine the company's financial statements and evaluate all factors before deciding to invest in the stock market.



Franklin Wireless's Effective Tax Rate

Franklin Wireless's Dividend Pay out



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