Post Earnings Coverage as Cemtrex’s FY16 Net Income Surged 76% on Acquisitions

Upcoming AWS Coverage on Hannifin

LONDON, UK / ACCESSWIRE / January 5, 2017 / Active Wall St. announces its post-earnings coverage on Cemtrex, Inc. (NASDAQ: CETX). The Company posted its financial results for the full year fiscal 2016 (FY16) on December 22, 2016. The Farmingdale, New York-based Company’s revenues and net income surge 65% and 76% y-o-y, respectively. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Cemtrex’s competitors within the Industrial Equipment & Components space, Parker-Hannifin Corp. (NYSE: PH), is estimated to report earnings on January 24, 2017. AWS will be initiating a research report on Hannifin in the coming days.

Today, AWS is promoting its earnings coverage on CETX; touching on PH. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CETX

http://www.activewallst.com/registration-3/?symbol=PH

Earnings Reviewed

In FY16, Cemtrex reported revenue of $93.70 million, which came in above $56.89 million recorded at the end of FY15. Growth in revenue, during the reported period was higher due to acquisitions of AIS and Periscope. The manufacturer of industrial air filtration systems reported FY16 net income of $4.99 million, or $0.58 per diluted share, compared to $2.84 million, or $0.40 per diluted share, in FY15.

Operating Metrics

For the three months ended on September 30, 2016, the Company posted gross margin of $29.21 million, or 31% of revenue, compared to $16.32 million, or 29% of revenue, in the prior year’s same period. The Company’s rise in gross profit during FY16 is linked to higher revenues. In FY16, the Company spent $24.15 million as general and administrative expenses compared to $13.28 million in the year ago comparable period. The Company’s operating income for FY16 came in at $5.06 million versus $2.50 million in FY15. Furthermore, Cemtrex’s EBITDA surged 120% during FY16 to $9.05 million from $4.11 million in FY15.

Segment Performance

During FY16, Industrial Products & Services segment’s revenue rose $17.62 million, or 56%, to $49.22 million from $31.62 million in FY15. On December 15, 2015, Cemtrex acquired AIS, which added $16.75 million to total revenues during the period, while the existing Company contributed additional $0.87 million to total revenue.

The Company’s Electronics Manufacturing Services segment’s revenue surged $19.20 million, or 76%, to $44.46 million in FY16 from $25.27 million in the previous year’s comparable period. The acquisition of Periscope on May 31, 2016, was accountable for $18.69 million revenue growth in the FY16, while the existing business contributed additional $0.51 million to total revenues.

In FY16, the Company generated $21.69 million of its revenues in United States compared to $4.57 million in the prior year’s corresponding period. Furthermore, non-US locations, which included Germany, Romania, and Hong Kong added $72.01 million to the Company’s revenues in FY16 compared to $52.32 million in FY15.

Cash Flow & Balance Sheet

In the year ended on September 30, 2016, Cemtrex generated $7.90 million in cash from operations compared to $3.88 million at the end of period a year ago. The Company had cash and cash equivalents balance of $6.05 million as on September 30, 2016, compared to $1.49 million, at the close of books on September 30, 2015. Furthermore, loans payable to bank amounting to $6.40 million stood in the Company’s books of accounts as on September 30, 2016, compared to $2.38 million as on September 30, 2015.

Stock Performance

At the closing bell, on Wednesday, January 04, 2017, Cemtrex’s stock fell 3.85%, ending the trading session at $7.74. A total volume of 907.04 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 400.86 thousand shares. In the last month and previous three months, shares of the company have rallied 82.55% and 90.64%, respectively. Moreover, the stock gained 4.88% since the start of the year. The Company’s shares are trading at a PE ratio of 18.83 and have a market capitalization of $72.99 million.

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