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WSI Industries shares pop on Q3 results

WSI Industries shares pop on Q3 results

Contract manufacturer WSI Industries (NASDAQ:WSCI) saw its shares spike Wednesday, a day after reporting fiscal third-quarter earnings rose sharply amid a 45 per cent rise in revenue, driven by its core business units.

The Monticello, Minnesota-based metal component manufacturer caters to the aerospace, defence, energy, semiconductor and medical sectors.

Net income spiked by 51 per cent to $598,000, or 21 cents per share, compared with the $397,000, or 14 cents per share in profit, a year-ago.

Revenue also increased by 45 per cent to $9.48 million, versus the $6.53 million in 2011.

In morning trade, WSI’s share price rallied 22.70 per cent climbing to $6 per share on the Nasdaq on Wednesday.

"We are very pleased to report on our fiscal 2012 third quarter results that have both sales and income at their highest levels in the last decade," chief executive Benjamin Rashleger said in a statement.

"Our sales growth came from both of our core businesses of recreational vehicles and energy."

Revenue from its recreational vehicle unit rose by 38 per cent, while its energy business saw sales jump by a whopping 91 per cent.

Gross margin narrowed to 20.2 per cent from 22.4 per cent a year earlier.

The company’s board also declared a quarterly dividend of four cents per share, which will be paid to shareholders on July 19.

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