Norsat International puts up some good numbers
Most of the blogs in this space are quarterly results or forecasts of earnings or price performance.This is another quarterly report combined with annual results.But this company is different than most of the other reports.Norsat is not only a junior technology company it is a junior satellite service company.This is avery technologically sophisticated area and filled with larger well financed companies.But Norsat has shown good growth and will in all likelihood grow again in 2017.
The Fourth Quarter
Norsat reported it's fourth quarter,together with it's annual results,on March8. The fourth quarter was operationally ahead of 2016.Revenues at $11 million were almost 15% larger than the fourth quarter of 2015.Their gross profit margin at 44% was 3% better than the fourth quarter of 2015.Although it is true that net earnings were negative at ($.02) per share compared to $1.50 per share for Q4 2015.This however is an accounting figure not a performance figure.Adjusted EBITDA was $2.2 million compared to $1.5 million for an increase of 44%.
Norsat has moved up in price quite rapidly in the last two years.Two years ago it was trading around $4.50 to $5.00 and last year at about $7.00 to $7.50 and now it trades at almost $15 per share.That is a 300% increase in two years.The trend shown in the fourth quarter indicates that 2017 figures will be above those in 2016.Perhaps hitting $45 to $50 million in revenues and $9 to $11 million in adjusted EBITDA.This would produce earnings per share of about $1.75 to $2 per share and a probable price of $16 to $18 per share.However this blog predicts that a couple of small acquisitions will be needed to support these numbers.And I believe that Norsat is looking at a few options here.
Annual Highlights
Norsat had a small increase in annual revenues,from $36 to $38 million, and also in it's gross profit margin.Net earnings actually fell from their 2015 values while adjusted EBITDA increased from $5.3 million in 2015 to $7.6 million in 2016.During 2016 NII made two small acquisitions and this broadened their revenue streams.And this helps to explain the uptick in revenues and adjusted EBITDA in the fourth quarter of 2016.This blog predicts adjusted EBITDA of $9 to $11 million and e.p.s of about $1.75 to $2.00 per share.In addition, a good first quarter will send their share price to the $`15.50 to $16.00 per share area.
The Fourth Quarter
Norsat reported it's fourth quarter,together with it's annual results,on March8. The fourth quarter was operationally ahead of 2016.Revenues at $11 million were almost 15% larger than the fourth quarter of 2015.Their gross profit margin at 44% was 3% better than the fourth quarter of 2015.Although it is true that net earnings were negative at ($.02) per share compared to $1.50 per share for Q4 2015.This however is an accounting figure not a performance figure.Adjusted EBITDA was $2.2 million compared to $1.5 million for an increase of 44%.
Annual Highlights
Norsat had a small increase in annual revenues,from $36 to $38 million, and also in it's gross profit margin.Net earnings actually fell from their 2015 values while adjusted EBITDA increased from $5.3 million in 2015 to $7.6 million in 2016.During 2016 NII made two small acquisitions and this broadened their revenue streams.And this helps to explain the uptick in revenues and adjusted EBITDA in the fourth quarter of 2016.This blog predicts adjusted EBITDA of $9 to $11 million and e.p.s of about $1.75 to $2.00 per share.In addition, a good first quarter will send their share price to the $`15.50 to $16.00 per share area.
Comments
Post a Comment