UPDATE: Profire Energy (PFIE) Posts Q4 Loss of 1c/Share; Guides FY16 Revenue Below Expectations

Profire Energy (NASDAQ: PFIE) reported Q4 EPS of ($0.01), which may not compare with the analyst estimate of $0.00. Revenue for the quarter came in at $9.8 million versus the consensus estimate of $7.6 million.

Management Commentary

“This was a record year for Profire and we are very pleased with what we were able to accomplish,” said Brenton Hatch, president and CEO of Profire Energy. “The baseline driver of growth continues to be the unique ability of our products to make oil and gas production safer, more efficient, and more compliant with industry regulations. Our amazing employees, customers, and suppliers each played an important role in helping the Company reach these new heights.

“Although we are in the midst of a very difficult environment, we believe the Company is well positioned to manage through this downturn and grow again when the market improves. We have no debt, and as of this past week, we had $18.1 million in cash reserves, which gives the Company a lot of options moving forward. While we know that the next couple quarters will be challenging for us, we are still very optimistic about the market opportunity and future of Profire. As we manage through this volatile period, we anticipate that, with time, our strategic investments and significant cost reductions will help us improve our operational leverage and strengthen our industry leadership over the long-term.”

Fiscal 2016 Guidance

Based on the current industry environment and its expected continued impact on the Company we are expecting a difficult year. For fiscal 2016, we are guiding for total revenues of $25.0-30.0 million and net income of $(1.0)-2.0 million. One of the biggest challenges that the Company faces is the lack of visibility into sales in the short term. We expect the latter half of the fiscal year to present a better sales environment than the first half, which we expect to coincide with an improved Company capability to sell products into the current environment.

*** The Street sees FY16 revenue of $44.2 million.

For earnings history and earnings-related data on Profire Energy (PFIE) click here.

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