Technology

Investors Weigh News from RADA Electronics Ind. Ltd. (NASDAQ:RADA)

RADA Electronic Ind. Ltd. (NASDAQ:RADA)

RADA Electronics Ind. Ltd. (NASDAQ:RADA)

RADA Electronics Ind. Ltd. (NASDAQ:RADA) shares are up 8% at 12:30PM EST to $2.40 after the company announced receiving an initial order for dozens of Multi-Mission Hemispheric Radars (MHR). The amount is for over $8 million which is more than 50% of all last year’s sales. The order is expected to be filled before the end of this year.

RADA Electronic Ind. Ltd. (NASDAQ:RADA)
One month stock price chart for RADA

Dov Sella, RADA’s CEO, commented, “This is a true breakthrough and highly significant order for RADA. Furthermore, strategically, it is our first delivery to a key US military customer, with potential for further orders down the road. We have been awarded with this order following long, demanding and detailed trials, as would be expected for a key defense application, proving the superiority of our radars in the increasingly important field of counter-UAV warfare.”

One week ago, RADA Electronics Ind. Ltd. (NASDAQ:RADA) announced their Q2 2017 financial results. RADA Q2 revenues were posted at $5.3 million, up 94% compared to the same period last year. Q2 gross Profit totaled $1.7 million versus gross profit of $0.2 million in Q2 2016. Operating income was $0.5 million in Q2 2017 compared to an operating loss of $1 million for the same period of 2016. Net income attributable to RADA’s shareholders in the second quarter of 2017 was $0.5 million, or $0.02 per share, compared with a net loss of $1.6 million, or $0.13 per share, in the second quarter of 2016. The market has responded favorably to the financial results and RADA stock has risen in value since the announcement.

RADA Electronics has a market capitalization of just $50 million which may be the reason that the company is not covered by any analysts. However, shares of RADA Electronic Ind. Ltd. (NASDAQ:RADA) have performed extremely well. YTD RADA stock is up over 91% and up over 97% for the year. RADA shares today hit a new 52-week high, sending the stock’s Relative Strength Index (RSI) to 71.13 which, most experts agree, places the shares barely in “overbought” territory.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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