Earnings Per Share Net Loss
($0.02) Reported | $0.01 Adjusted ($594,627)

 

Arotech’s Q2 2017 Results

Arotech [NASD:ARTX] took a hit once more in their second quarter. Unlike Q1, Q2 missed the forecast EPS, coming in at $0.01 rather than the consensus of $0.03. The company reported a loss this quarter of $594,627. Revenue is down 1.5% from last year.

It’s not all bad, though, as the company also announced a comprehensive income of $76,515, up substantially from the loss of $1,097,988 this time last year. Total operating costs and expenses decreased by $232,936, or about 1% from 2016.

 

Share Price Impact

Observing Q1 2017 as compared to Q1 2016:

  • EPS expectations were met
  • Loss reported of $226,665
  • Revenue decreased by 12%.
  • Total costs decreased by 10.65%.
  • Comprehensive Income was up from a loss of (283,679) to a gain of $146,724.

This ER resulted in a drop in share price from $4+ to a low of about $2.85. While Q2 results weren’t ideal, the EPS between Q1 and Q2 didn’t really change. Comparative revenue increased, and comprehensive income increased more significantly.

 

My Verdict

This is a company with rather predictable trade patterns. Investors should be aware of how heavily it’s traded, but not let that sway them. I personally do not believe the drop will be as dramatic as it was last quarter. Arotech has been picking up steam from investors in the last few months, and the overall attitude toward the company maintains a positive tone.

 

The Company

The Arotech Corporation is an industrial defense and security products and services company. Interactive simulations for law enforcement, military, and commercial markets make up one end of the company, while power systems for the military, commercial and medical markets make up the other half.

The Training and Simulation Division (ATSD) includes FAAC Incorporated, Milo Range, and Realtime Technologies. They devote their efforts toward creating a safer and more economic training environment for the consumer in three product areas: the Vehicle Simulation Group, Air Warfare Simulations Group, and Use of Force Group.

The Power Systems Division (APSD) includes Epsilor-Electric Fuel, UEC Electronics, and Electric Fuel Battery Corporation. They develop portable power solutions for a wide variety of applications, focusing on the military, industrial and medical markets.


Disclaimer
As of this moment, I do not own shares of the Arotech Corporation [NASD:ARTX]. I have in the past, and will likely hold a position again in the near future. My opinions are entirely my own and may or may not reflect the opinions of my peers on TickHounds. I am not being compensated for sharing my due diligence in any way other than what tips may be accrued.

Most information for this post was retrieved from ARTX’s 2Q and 1Q 10-Q.