Why Eltek Earnings Sent ELTK Stock Up 75%

by Burke Speaker | November 27, 2013 10:17 am

Eltek (ELTK[1]) earnings gave ELTK stock a huge boost, with a some 75% spike thanks to a stellar earnings report.

eltek-eltk-eltk stock[2]Though it’s fluctuating somewhat, the ELTK stock boom is in part thanks to its record earnings — more than just a good quarter. In short, EPS jumped to $0.12 from $0.02 in Q3 2012, a result of a 2.2% jump in gross margin to 18.3%.

And the EPS figure does not include a $3.5 million share investment by Nistec this month

The earnings report in total is pretty stellar: The company reported revenues for the quarter at $12.8 million, up from $10.8 million recorded in the third quarter of 2012.

Gross profit for the third quarter of 2013 was $2.3 million (18.3% of revenues) compared with gross profit of $1.7 million (16.1% of revenues) in the third quarter of 2012.

Its operating profit fgrew to $735,000 compared to $285,000 in Q3 of 2012.

Net profit for the third quarter of 2013 was $585,000 or $0.09 per fully diluted share, compared to net profit of $135,000 or $0.02 per fully diluted share, in the third quarter of 2012. (Full earnings report here[3])

ELTK stock is up 216% year to date.

Established in 1970, Eltek Ltd. manufactures and supplies technologically advanced, custom made circuitry solutions for use in compact electronic products.

  1. ELTK: http://studio-5.financialcontent.com/investplace/quote?Symbol=ELTK
  2. [Image]: https://investorplace.com/wp-content/uploads/2013/11/eltek-eltk.jpg
  3. Full earnings report here: http://www.marketwatch.com/story/eltek-reports-third-quarter-and-nine-months-financial-results-2013-11-27

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