Digital Ally, Inc. (NASDAQ: DGLY) is headed up in the market this morning, and for good reason. The company released its third quarter earnings report, showing strong growth in revenue and positive net earnings. Here’s what’s going on:
DGLY Stock Is Up On Q3 Earnings
In the report, Digital Ally said that revenues increased 23% on a year over year basis to $3,588,640. In fact, the revenue generated in Q3 was the highest revenue generated by the company since the first quarter of 2017.
Importantly, this revenue growth is likely to stick around as a large part of it, about $1.1 million, was generated by new product lines known as ThermoVU and Shield. Considering the fact that these are new product lines, we could see strong revenue growth in these segments ahead.
Earnings per share came in at $0.02. That’s big news for the company considering that it generated a loss of $0.26 per share in the third quarter of 2019. The company said that the increase in earrnings is the result of an increase in total revenues as well as a decrease of 12% in selling, and general administration expenses. Excitingly, this is the highest level of earnings per share generated by the company since the first quarter of 2013.
In a statement, Stanton E. Ross, CEO at DGLY, had the following to offer:
We are very pleased to report a 23% increase in total revenues for our third quarter and net earnings per share of $0.02. Furthermore, our third quarter 2020 total revenues of $3,588,640 represents our highest quarterly total for revenues since the first quarter of 2017 and our earnings per share represents our highest earnings per share since the first quarter of 2013.
Our decision not to stand still during the Covid-19 pandemic and proactively expand our product offerings to include the ThermoVU and Shield lines has proven to be successful as they generated approximately $1.1 million in combined revenues during the third quarter 2020. We are considering further expansion of the ThermoVU and Shield product lines to include complementary products that we hope they will achieve similar market acceptance. We also reduced our SG&A expenses by reducing staffing levels, limiting travel and reducing many advertising and promotional activities. In addition, we moved to a new, smaller office and warehouse space in June 2020 that will dramatically reduce our occupancy costs for the balance of 2020 and beyond.
This Is Big News
At the end of the day, things seem to be falling in line for Digital Ally. The company’s recent product launches have led to tremendous revenue growth. As a result, the company was finally able to produce a profit, rather than a quarterly loss.
Moreover, with political and social tensions on highs, and COVID-19 continuing in the United States, there are reasons to be excited about a company that makes police body cans and personal protective equipment. Not only was Q3 positive for the company, given the current climate, there’s a lot of growth ahead.
All in all, DGLY is in a perfect position right now. It sells the right products, at the right time, and has worked its way back into profitability. All in all, if you’re not watching DGLY, you’re missing out.
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