Q.E.P. Posts $61M Q2 Sales, $7.9M Pretax Profit
QEPC sits 60% above its 52-week low of $35.05 on light trading volume (0.1× avg).
Summary
Q.E.P. reported Q2 sales of $61.05 million with EPS of $1.97, pretax profit of $7.903 million, operating income of $7.391 million, and gross profit of $20.896 million against $13.505 million in operating expenses. The gross margin implied by these figures is roughly 34%, and the operating margin near 12%, a solid profitability profile for a small-cap adhesives and flooring tools maker. The stock is trading at $55.98, essentially at its 52-week high of $56.00, so the market has already been pricing in good news. This follows the September 8 acquisition of Spray-Lock, which expanded the adhesives manufacturing platform and likely contributed to the top line. With shares at the high and the company thinly traded on the OTC, the reaction will hinge on whether these results beat or merely meet expectations, which the brief does not specify.
At the time of this announcement, QEPC was trading at $55.98 on OTC in the Manufacturing sector, with a market capitalization of approximately $171.6M. The 52-week trading range was $35.05 to $56.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.