Optical Cable Q3 Sales Jump 22% on Data Center Demand, EPS $0.21
OCC has more than doubled off its 52-week low of $4.02.
Summary
Optical Cable reported fiscal Q3 sales of $24.3 million, up 22% year-over-year, driven by enterprise and data center demand. Gross profit rose 43.9% to $9.1 million on manufacturing leverage, and net income reached $1.9 million, or $0.21 per share. Sales slightly missed the single-analyst consensus of $24.5 million, but the strong growth and margin expansion follow a Q2 that already showed 26.6% sales growth and a return to profitability. The company did not provide guidance, so the market will focus on whether this demand momentum continues. Insider selling has been heavy over the past 90 days, which may temper enthusiasm despite the solid results.
At the time of this announcement, OCC was trading at $12.21 on NASDAQ in the Technology sector, with a market capitalization of approximately $120.9M. The 52-week trading range was $4.02 to $27.98. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.