Executive Summary
Winchester Bancorp's QQ2 2024 results show a modest but meaningful sequential improvement from a loss in Q1 to a small net profit in Q2. Revenue of $10.895 million supported a gross profit of $4.181 million (gross margin ~38.4%) and an operating income of $0.414 million, with net income of $0.373 million and EPS of $0.0395 for the quarter. The company also delivered a notable year-over-year uplift in key profitability metrics: revenue up 22.7%, gross profit up 7.8%, operating income up 26.2%, net income up 37.1%, and EPS up 37.2%, according to the provided data. Despite the positive quarterly dynamics, underlying profitability remains modest in the context of industry norms for regional banks, and liquidity indicators suggest sparse short-term liquidity buffers.
The quarter showcases a sequential recovery driven by cost containment and revenue stability, but the bank operates with very tight liquidity and relatively low returns on assets and equity. Valuation metrics imply a premium relative to earnings and book value, which places emphasis on revenue stability, loan growth potential, and margin resilience going forward. Absent stronger loan growth or margin expansion, the path to sustained outperformance versus regional-bank peers remains dependent on efficiency gains and deposit stabilization.
Key Performance Indicators
QoQ: 149.88% | YoY:26.22%
QoQ: 159.02% | YoY:37.13%
QoQ: 159.04% | YoY:37.15%
Key Insights
Revenue: 10,895,000 in Q2 2024; YoY +22.71%, QoQ +1.52%
Gross Profit: 4,181,000; Gross Margin 38.38%; YoY +7.81%, QoQ +34.57%
Operating Income: 414,000; Operating Margin 3.80%; YoY +26.22%, QoQ +149.88%
Net Income: 373,000; Net Margin 3.42%; YoY +37.13%, QoQ +159.02%
EPS: 0.0395; YoY +37.15%, QoQ +159.04%
Liquidity & Coverage
Current Ratio: 0.117; Quick Ratio: 0.117; Cash Ratio: 0.0627
DSO: 25.89 days; Inventory Turnover: N/A; Receivables Turnover: 3.48
Cash per Share: 7.89; Free Cash Flow ...
Financial Highlights
Revenue: 10,895,000 in Q2 2024; YoY +22.71%, QoQ +1.52%
Gross Profit: 4,181,000; Gross Margin 38.38%; YoY +7.81%, QoQ +34.57%
Operating Income: 414,000; Operating Margin 3.80%; YoY +26.22%, QoQ +149.88%
Net Income: 373,000; Net Margin 3.42%; YoY +37.13%, QoQ +159.02%
EPS: 0.0395; YoY +37.15%, QoQ +159.04%
Liquidity & Coverage
Current Ratio: 0.117; Quick Ratio: 0.117; Cash Ratio: 0.0627
DSO: 25.89 days; Inventory Turnover: N/A; Receivables Turnover: 3.48
Cash per Share: 7.89; Free Cash Flow per Share: -0.00212; Operating Cash Flow per Share: 0.00603
Leverage & Profitability Ratios
Debt Ratio: 0.163; Debt to Capitalization: 0.644; Long-Term Debt to Capitalization: 0.644; Interest Coverage: 0.0639
ROA: 0.0417% (0.000417); ROE: 0.464% (0.00464); Return on Capital Employed: 0.179%
P/Book: 1.094; P/Sales: 8.06; P/E: 58.88; EV/Revenue: 306.43; P/CF: 1,541.26; P/FCF: -4,392.59
Dividend Yield: 0%; Dividend Payout Ratio: 0%
Notes: Some balance sheet metrics appear inconsistent (e.g., Debt ratio vs. Debt-to-capitalization). Data likely reflects labeling or source inconsistencies in the provided dataset.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.90M |
22.71% |
1.52% |
| Gross Profit |
4.18M |
7.81% |
34.57% |
| Operating Income |
414.00K |
26.22% |
149.88% |
| Net Income |
373.00K |
37.13% |
159.02% |
| EPS |
0.04 |
37.15% |
159.04% |
Key Financial Ratios
operatingProfitMargin
3.8%
operatingCashFlowPerShare
$0.01
Management Commentary
No earnings call transcript was provided for QQ2 2024 (earningsTranscript: []). As a result, there are no management quotes grouped by themes available in this dataset.
Forward Guidance
No explicit management guidance for QQ3 2024 or beyond was provided in the supplied data. Given industry trends in regional banks—modest loan growth potential, deposit competition, and rate-sensitive net interest margins—investors should monitor: (1) net interest margin stabilization as interest rates evolve, (2) loan demand and mix ( CRE, residential vs. commercial lending ), (3) deposit growth/retention and non-interest income opportunities, (4) credit quality indicators and reserve adequacy, and (5) efficiency initiatives to improve operating leverage. The bank’s Q2 profitability improvement is encouraging, but a sustainable path to earnings growth will likely hinge on balance sheet expansion and margin resilience in a fluctuating rate environment.