Business
The Electro Optic (ASX:EOS) share price slumps 5% as net profits plummet
The Electro Optic Systems Hldg Ltd (ASX: EOS) share price has struggled to make headway since the COVID-19 sell-off back in March 2020.
Why the Electro Optic share price is struggling
COVID-19 has deferred revenues for the aerospace and defence business into 2021 and 2022 as delivery schedules are pushed out.
While the company will realise these revenues in the future, indirect costs will be expensed in the present, creating a short term negative impact on profitability.
This has been a consistent challenge for the business, as indicated in its 1H20 results in August 2020 and FY20 results released today.
FY20 performance highlights
Electro Optic delivered a 9% increase in revenue to $180 million, citing constraints driven…
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