Technology

CPS Technologies Corporation (NASDAQ:CPSH) Earnings Don’t Impress

CPS Technologies Corporation (NASDAQ:CPSH)

Yesterday, CPS Technologies Corporation (NASDAQ:CPSH) announced their Q3 2017 earnings results and today the market responded by sending CPSH shares higher by 2.7% in early trading. Over the past six months, shares of the advanced materials manufacturer have traded between $1.10 and $1.35. Today’s morning trading saw shares open $0.08 higher than yesterday’s close and run up to the inter-day high of $1.30 before sellers stepped in and sent the stock back down to $1.15. Volume has been heavy – over 20 times the posted daily average.

CPS Technologies Corporation (NASDAQ:CPSH)

CPS Technologies Business

Norton, MA-based CPS Technologies Corporation (NASDAQ:CPSH) develops and manufactures metal-matrix composite components used to improve the reliability and performance of certain electrical systems. CPS products are used in motor controllers for hybrid and electric vehicles, high-speed trains, subway cars and wind turbines.  They are also used as heat-spreaders in internet switches, routers, and high-performance microprocessors.  CPS Technologies Corporation (NASDAQ:CPSH) also develops and produces metal-matrix composites for the defense, aerospace, and oil & gas sectors.

CPS Technologies Q3 Earnings

CPS Technologies Corporation (NASDAQ:CPSH) announced revenues of $4.2 million and net income of $13 thousand for Q3 2017. This compares with revenues of $3.3 million and a net loss of $139 thousand for the quarter ended October 1, 2016.

Revenues for the nine months ended September 30, 2017 were $10.8 million compared with revenues of $12.5 million for the corresponding period a year ago- a 14% drop. The net loss for the nine-month period in 2017 totaled $925,000 compared with a $200,000 net loss for the first nine months of 2016.

Grant Bennett, CEO, said, “A year ago we reported that we expected the weakness in demand would persist for a few more quarters.   This belief turned out to be accurate as it was not until the second quarter this year that we achieved a sequential increase in quarterly revenues.  The upward trend continued this quarter which is 48% higher than our low point of Q1, 2017.  As a result of the increase in revenues, we were able to generate above breakeven results for the first time in over a year.”

CPSH Stock Performance

Earnings have been decreasing each year since 2014 when the company posted a per share profit of $0.08. Last year, 2016, the company posted a per share loss of (-$0.03). That downtrend accompanied lower annual sales figures. Their best year was 2014 when they reported $23.1 million in sales. That number has declined each year since, and for 2016 sales were listed at $15.4 million.

CPSH shares are down almost 25% for the year and over 40% year-to-date. The current trading price is barely above the 52-week low of $1.02 and almost half the 52-week high of $2.20.

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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