RF Industries, Ltd. (NASDAQ: RFIL) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company reported its financial results for the first quarter, showing impressive growth in sales. Of course, this led to excitement among investors who are sending the stock screaming for the top. Today, we’ll talk about the financial results, what we’re seeing from the stock, and what we’ll be watching for with regard to RFIL ahead.
RFIL Sees Strong Gains On Financial Results
As mentioned above, RF Industries is having an incredibly strong start to the trading session this morning after reporting its financial results for the first quarter. Here’s what we saw from the report:
- Strong Gains In Net Sales – In terms of net sales, RFIL definitely did not disappoint. During the quarter, the company generated net sales in the amount of $10.3 million. That figure proved to be a massive increase on a year over year basis from Q1 2017 net sales in the amount of $6.6 million.
- Earnings – Earnings also proved to be a big hit. During the quarter, the company generated earnings per diluted share in the amount of $0.05. Once again, this figure shows incredible growth on a year over year basis. In the same quarter one year ago, the company reported a loss in the amount of $0.02 per share.
- Margin – On the margin side of things, growth was impressive yet again. During the quarter, the company had a margin of 5.4%. That’s a vast improvement year over year from -5.4%.
- Cash Balance – Finally, the company ended the quarter with $5.9 million in cash on hand.
In a statement, Robert Dawson, President and CEO at RFIL, had the following to offer:
In the first quarter we executed well on our long-term growth initiatives which provided a strong start to fiscal 2018. We drove increased sales at all divisions over Q1 last year and controlled costs, allowing us to deliver improved margins and profitability.
As I discussed at the end of Q4, we are building a culture of positive energy and accountability where we leverage the correct channels and invest in the necessary resources to address the needs of the market. These new go-to-market strategies and channel models are working with higher sales and bookings across all divisions in Q1. These increases helped us raise our January 31, 2018 backlog to $20.2 million, compared to $4 million at October 31, 2017.
We continue to build momentum and while we are cautiously optimistic about the rest of year, we do expect our current backlog to power significant growth in net sales for the fiscal second quarter ending April 30, 2018, compared to the same quarter last year.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes the moves. In this particular case, the news proved to be overwhelmingly positive. So, it’s no surprise to see that RF Industries is headed for the top in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:34), RFIL is trading at $5.40 per share after a gain of $1.95 per share or 56.52% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RFIL. In particular, we’re interested inf ollowing the ontinued growth of the company’s revenue backlog as the company continues to push on the sales front. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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