Clean Diesel Technologies, Inc. (NASDAQ:CDTI)
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) shares are up over 30% for the week after the pollution treatment company posted Q2 2017 financials at the beginning of the week. However, the real move came on Wednesday and continued through Thursday morning. On Wednesday CDTI stock opened close to $1.60, then by late morning on Thursday the shares hit $2.32 for a gain of more than 40%. Since the trades over $2.30 the shares retreated to end the day at $2.03.
Q2 2017 total revenue was $8.4 million for Clean Diesel Technologies, Inc. (NASDAQ:CDTI) which was no change from Q2 2016. Gross margin was 23% for Q2 2017, versus 20% for the same period from last year. Total operating expenses for Q2 2017 was $2.3 million, compared to $4.8 million for Q2 2016. The decrease reflects the 2016 implementation of Clean Diesel’s cost reduction initiatives as well as a reduction in the liability related to the exit of their Canadian manufacturing facility. Clean Diesel Technologies, Inc. (NASDAQ:CDTI) achieved its goal to reduce ongoing operating expenses to $3.0 million in the second quarter and anticipates that operating expense will continue at this level or lower for the remainder of the year. Net loss was (-$385,000), or (-$0.02) per share, compared to a net loss of (-$222,000), or (-$0.06) per share for Q2 2016. Cash at June 30, 2017 was $1.6 million, compared to $7.8 million at December 31, 2016 including a $600,000 decrease in our line of credit since the first quarter.
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) provided a forecast to the market. Based on their current business configuration and Q2 2017 results, Clean Diesel believes revenue will come in between $32.0 – $35.0 million with gross margins between 23% and 25%.
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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.