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SPAR Group stock rockets after solid fiscal 4Q earnings on surging revenue

CEO Christiaan Olivier says the company made 'foundational improvements' in its ability to deliver profitable growth and expected continued revenue growth during 2019

A store
The SPAR Group’s syndicated services included new store set-up, store remodel, and fixture installation services for specific retailers or manufacturers

SPAR Group Inc (NASDAQ:SGRP) stock rocketed in premarket trade Tuesday after the merchandising and marketing services company reported solid fiscal fourth-quarter earnings that showed revenue expansion.

Shares in the White Plains, New York company shot up 17.3% to $0.78   

For the financial quarter ended December 2018, the company posted earnings of $535,000, or $0.03 per share on revenue of $57 million. Revenue grew 14% on a year-on-year basis.

READ: Surge Components rockets after posting surge in fiscal 1Q revenue and profit

Excluding non-cash and one-time charges, net income for the SPAR Group during 2018 was approximately $1.3 million or $0.06 per share, compared with $918,000, or $0.04 per diluted share during 2017.

“During 2018 we made significant progress in addressing structural issues within our domestic operations, realigning our sales and marketing efforts and improving our technologies,” said SPAR Group CEO Christiaan Olivier. “These changes are making a difference and have resulted in improving financial operating results.”

The company said it logged double-digit top-line growth during 2018, with organic growth both domestically and internationally helped by the recent acquisition of Resource Plus.

“While improvements in profitability during 2018 were clouded by one-time charges, we made foundational improvements in our ability to deliver profitable growth,” said Olivier. “Our pipeline of business opportunities is strong, and we expect continued revenue growth during 2019. We expect to have even stronger growth in profitability during 2019, as we gain further benefit from structural changes.”

The SPAR Group’s services consist of syndicated services, as well as new store set-up, store remodel, and fixture installation services for a specific retailer or manufacturer. 

It also specializes in in-store services initiated by retailers and manufacturers linked to new store openings, new product launches, special seasonal or promotional merchandising, product recalls, and in-store product demonstrations, as well as inventory control and stand-alone project contracts.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

 

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