RF Industries (NASDAQ:RFIL) offer a broad array of industrial products and electronic components, and this continues to enhance investor’s confidence in its future fundamentals.
The substantial revenue and earnings growth in the first half of 2018 pushed RF Industries stock price to an all-time high of $8.5 a share. Its share price increased 200% since the start of this year, up 400% in the last twelve months. The company’s outlook and order backlog, however, indicates further upside potential in the second half of the year, according to market analysts.
Record Breaking Results Support the Bullish Trend
The second quarter showed the best results in RF Industries history. Its sales increased almost 200% from the year-ago period, thanks to sales growth from its custom cabling manufacturing and assembly segment. This segment benefited from the significant increase in sales of fiber optic cables, specialized custom cabling, and other copper cabling products.
Besides revenue growth, RF Industries has impressed investors through substantial growth in gross margin and earnings per share.
Its second-quarter gross margin improved 1000 basis points while operating margin grew 1700 basis points from the year-ago period. Its earnings per share were standing around $0.34 per share from $0.01 per share in the same period last year.
Rosy Outlook Strengthens Confidence
With $10 million in order backlog, the company expects to extend its momentum in the second half of year.
“At this time, we expect the Company’s new bookings, in combination with our current backlog, to result in significant growth in net sales and net income for the current fiscal third quarter ending July 31, 2018, compared to the third quarter last year“, said Robert Dawson, President and CEO.
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Free cash-flows of more than $2.5 million and a cash balance of $8 million (with no outstanding debt) put RF Industries in a stable position to invest in growth opportunities along with returning significant cash to investors. This is because analysts believe RF Industries stock has further upside ahead despite recent gains.
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