Collectors Universe releases fourth quarter and fiscal year end earnings today

[jhs5120]

I'd imagine revenue is up significantly, the card business continues to grow and the coin business continues to slow.

I'm sure there will be an increase in warranty expense for the quarter. They had $728k reserved at the end of March. The only real surprise IMHO would be if the auditors decide they need to change up their warranty reserve methodology. Right now they seem to be reserving for around .02% of the total declared value of collectibles (adding $402k of warranty reserve on ~$2B of collectibles processed). For two consecutive years payments on the warranty have outpaced additions to the reserve (albeit not by much).

Right now, I doubt the warranty cost for the quarter is material. If it were, it would be interesting to see how the auditors react. Suggesting that PSA updates their methodology going forward (say .05% of declared value) would result in no meaningful impact on PSA financials, but suggesting that PSA updates their methodology and retroactively applies the change would potentially result in a significant hit. I doubt that would happen though - the declared value of trading cards is less than 10% of the declared value of coins.

Honestly, I think PSA will be fine.