INVX @ 5.92 +0.90 17.93%
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Tuesday April 18, 3:06 pm ET
Innovex Inc. Shares Rise 13 Percenton Strong Sales
NEW YORK (AP) -- Innovex Inc. shares climbed Tuesday, boosted by news that the maker of high-density flexible circuits reported a narrowing of its loss for the latest quarter.
That was due to strong sales of flex suspension assembly, or FSA, components, which connect two parts of a disk drive.
Stock of the Maple Plain, Minn.-based company rose 66 cents, or 13 percent, to $5.68 in early afternoon trading on the Nasdaq Stock Market. Volume was heavy.
Tuesday's strongest level of $5.86 was a 52-week high surpassing the prior high of $5.62 set March 27. There was a 52-week low of $2.80 on Oct. 28.
The company also provided guidance for the third quarter between $44 million and $46 million -- below average Wall Street expectations of $47.3 million, but Innovex said it would save a combined $500,000 to $1 million in the fourth quarter by moving its operations to Thailand and selling its metal business.
"Progress in restructuring and solid operational performance at the new Thailand facility bode well for margins," Cowen & Co. analyst Robert Stone wrote in a research report.
He upgraded the stock to neutral from underperform.
Innovex said late Monday that its fiscal second-quarter loss narrowed to $535,000, or 3 cents a share, including restructuring charges of 7 cents a share. Adjusted net income for the quarter was $843,000, or 4 cents a share.
Analysts on average were looking for earnings of a penny a share, according to Thomson Financial.
Revenue fell 2.2 percent to $51.5 million from $52.7 million in the prior second quarter. However, the revenue beat the $47.3 million expected by Wall Street.
FSA products accounted for 60 percent of the company's net sales for the quarter. |
