Shares of Daily Journal Corporation DJCO have gained 2.8% since the company reported its earnings for the six months ended March 31, 2025. This compares to the S&P 500 index’s 2.5% decline over the same time frame. Over the past month, the stock has gained 10.5% compared with the S&P 500’s 4.9% growth, underscoring the market's positive reception of the company’s latest financial results.
For the six months ended March 31, 2025, Daily Journal reported net income of $40.34 per share compared to $20.36 per share in the year-ago period. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The company posted consolidated revenues of $35.9 million, marking a 10.2% increase from $32.6 million in the same period a year earlier. The company’s consolidated pretax income more than doubled to $76.2 million from $36.4 million, driven largely by investment-related gains. Net income surged to $55.6 million, compared to $28 million in the year-ago period, a 98% year-over-year increase in net earnings.
Daily Journal Corporation Price, Consensus and EPS Surprise
Daily Journal Corporation price-consensus-eps-surprise-chart | Daily Journal Corporation Quote
Revenue Drivers and Segment Performance
The top-line growth was propelled primarily by Journal Technologies, whose license and maintenance fees rose by $1.6 million, while public service fees increased by $2.5 million. These gains were partially offset by a $1.2 million decline in consulting fees. The Traditional Business segment also contributed to revenue growth with a $0.4 million rise in advertising revenues and a $0.1 million increase in other service fees.
Segment-level profitability reflected this dynamic. Journal Technologies posted a pretax income of $0.5 million, up from $0.4 million, with revenue gains of $2.8 million largely neutralized by a $2.7 million rise in operating expenses. These higher costs were attributed to salary increases, expanded contractor engagement, staffing to manage installation projects, and increased third-party hosting fees. Meanwhile, the Traditional Business saw its pretax income grow by $0.3 million to $1.2 million, supported by its more modest revenue increase of $0.5 million.
Non-Operating Income Surge
A key contributor to the company’s earnings growth was the substantial increase in non-operating income, which reached $74.5 million, up from $35.1 million in the prior-year period. This jump was mainly due to net unrealized gains of $72.8 million on marketable securities, far exceeding the $34.5 million in realized and unrealized gains reported a year earlier. However, dividend and interest income slightly declined by $0.4 million to $2.4 million.
As of March 31, 2025, Daily Journal held $431.5 million in marketable securities with net pretax unrealized gains of $292.4 million. The company also recorded a deferred tax liability of $76.9 million associated with these appreciated securities, payable only upon their sale.
Tax Impact and Effective Rate
The company’s income tax provision for the period totaled $20.6 million on pretax income of $76.2 million. Of this, $19.2 million stemmed from taxes on unrealized gains in the investment portfolio. Other components included $0.9 million from U.S. operations, $0.04 million from foreign income, and $0.6 million due to a change in state apportionment. These were partially offset by a $0.1 million tax benefit related to dividend deductions and other permanent book-tax differences. The effective tax rate, including unrealized gains, stood at 27%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Daily Journal Corp. (S.C.) (DJCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
/Intel%20Corp_%20Santa%20Clara%20campus-by%20jejim%20via%20Shutterstock.jpg)
/EV%20in%20showroom%20by%20Robert%20Way%20via%20Shutterstock.jpg)
/AI%20(artificial%20intelligence)/Businessman%20touching%20the%20brain%20working%20of%20Artificial%20Intelligence%20(AI)%20Automation%20by%20Suttiphong%20Chandaeng%20via%20Shutterstock.jpg)
