Nortech Systems Incorporated (NASDAQ: NSYS) is climbing early on in the trading session today, up nearly 100% after reporting its financial results for the third quarter. Here’s what we saw from the report:
NSYS Reports Q3 Financial Results
In a press release issued early this morning, Nortech Systems announced its financial results for the third quarter of 2019. The results proved to be overwhelmingly positive.
In the release, the company said that it generated net sales in the amount of $30.1 million for the quarter. In the same quarter last year, the company generated revenue in the amount of $29.6 million for the third quarter.
Operating income saw a 10% increase, climbing from $649,000 to $713,000. Net income also saw substantial growth.
During the third quarter, NSYS reported net income in the amount of $413,000 in the third quarter, working out to $0.16 per share. During the same quarter last year, the company generated net income of $364,000, working out to $0.14 per share.
Finally, the company is seeing strong growth in its contractual backlog. In fact, at the end of the third quarter, the company’s backlog came to $58.1 million. At the end of the same quarter last year, the contractual backlog came to $43.1 million.
In a statement, Jay. D. Miller, President and CEO at NSYS, had the following to offer:
We are pleased with our third quarter improvements in margin and operating income. Revenue met our expectations and our margins were positively impacted by the continuation of strategic operational efficiencies while we manage through component shortages. We continue to expect to deliver on our backlog for the remainder of the year, which is amongst the highest Nortech backlog in 10 years.
Why The Stock Is Nearly Doubling On This News
Earnings reports are a common occurance. Some are good, some are bad, and some come as expected, but they just about always lead to movement. Nonetheless, it’s not all too often that the movement is gains in multiples. So, what’s the deal?
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