Why is WSI Industries Stock Up Nearly 30% Today?

WSI Industries

It’s the last trading day of the year, and it appears WSI Industries (NASDAQ:WSCI) is going to make the most out of it. Looking at Friday’s trending tickers of the day, it’s hard to ignore WSI Industries as it is continuing to climb, trading up nearly 30%.

What Happened?

Unlike the other companies on the market that are inching higher today, WSI Industries hasn’t actually announced anything new that would give a reason for its almost 30% increase. That said, the Minnesota-based company did disclose last Wednesday its fiscal 2018 Q1 financial earnings, which could mean that shareholders are still on a bit of a high following the results, thus explaining Friday’s surge as we move closer to the new year.

At the time of writing, WSI Industries is trading at $6.20, which puts the stock up $1.20, or 24.00%.

The 2018 Q1 Earnings Report

Last week, on December 20, just days before Christmas, the machine industry company posted its 2018 financial results for the first quarter which ended on November 26, 2017.

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Commenting on the results, and this could be one of the reasons the stock is trading higher one week later, CEO Michael Pudil stated that WSI is extremely happy with the results from its fiscal 2018 Q1. He added that WSI Industries witnessed a jump in sales in all of its key business divisions as well as returned to profitability in comparison to the prior year’s fiscal Q1.

Let’s check out the numbers:

– WSI Industries reported sales of $7,529,000, which is a considerable increase (19%) from the prior year’s amount.

– The Minnesota-based company disclosed that net income came in at $86,000

– Sales in WSI Industries aerospace and industrial segment increased 61%; this increase was driven by new customers as well as new programs

– Sales in the company’s energy business increased a whopping 526% due to new customers.

The Takeaway

While the company remains optimistic, CEO Pudil did state that WSI Industries still has a lot to do and a long way to go before it reaches the level that it wants too in 2018. But, these results are still fairly comforting, so my question for you is: will you be adding WSI to your 2018 investment portfolio?

Let us know!

Featured Image: Depositphotos/© depositedhar