Eltek Ltd. (NASDAQ: ELTK) is climbing in the market this morning, and for good reason. The company released its financial results for the first quarter, exciting investors and sending the stock for the top. Today, we’ll talk about:
- The results;
- what we’re seeing from ELTK stock as a result; and
- what we’ll be watching for haead.
ELTK Announces Earnings
As mentioned above, Eltek is having a great start to the trading session this morning after announcing its financial results. The results were announced by way of press release early this morning. Here’s what we saw from the report:
- Revenue – Q1 revenues came in at $8.7 million. This figure fell from $8.9 million in the first quarter of 2018.
- Gross Profit – Gross profit proved to be a major source of excitement. During the quarter, 17.6% of revenues or $1.539 million was gross profit. That’s an incredible increase over the $444,000 gross profit reported in the same quarter one year ago.
- Net Profit – Net profits came in at $242,000, which works out to $0.12 per fully diluted share. In the same quarter last year, ELTK generated a loss of $0.33 per share.
In a statement, Mr. Eli Yaffe, CEO at ELTK, had the following to offer:
We are glad that this quarter’s results reflect the implementation of the first stage of our turnaround plan, which we started during the last quarter of 2018. We continue in our efforts to further increase operating efficiencies, to improve customer satisfaction, to formulate a more effective sales strategy and continue implementing our plan to reach sustained profitability.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Eltek, the news proved to be incredibly positive.
After all, earnings reports are the most up to date look at a publicly traded company’s financial data that we get. With such strong growth in net profits and margins, it only makes sense that excited investors are pushing the stock for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:51), ELTK is trading at $2.71 per share after a gain of $1.07 per share or 65.24% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ELTK. In particular, we’re interested in following the story surrounding the company’s continued work to bring value to investors through expanded profit margins and earnings. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!