RADA Electronic Industries (RADA) Tops Q2 EPS by 2c, Revenues Beat; Raises FY20 Revenue Guidance Above Consensus

RADA Electronic Industries (NASDAQ: RADA) reported Q2 EPS of $0.02, $0.02 better than the analyst estimate of $0.00. Revenue for the quarter came in at $17.5 million versus the consensus estimate of $15.47 million.

Highlights of the second quarter of 2020

• Quarterly revenues up 75% year-over-year to a record $17.5 million
• Net income of $0.7 million and Adjusted EBITDA of $1.75 million – 10% of revenue
• 2020 revenue guidance increased to over $70 million, implying over 58% growth year-over-year, with continued sequential revenue growth throughout the remainder of the year
• US manufacturing facility at full operation to supply US market demand.

Management Comments

Dov Sella, RADA's Chief Executive Officer commented, "We are very pleased with our results and the positive momentum in our business, which led to a significant 75% year-over-year revenue growth and sequential quarterly growth of 16%. Our strong revenue growth, stable gross margins and stabilizing operating expenses are yielding strong EBITDA improvement. We reported Adjusted EBITDA of $1.7 million in the quarter, which was more than double that of the first quarter."

Continued Mr. Sella, "Our radars enable life-saving active protection solutions for advanced military tactical forces and critical infrastructure, and are in the heart of current modernization programs, especially in the USA. The strong demand for our radars is being driven by significant and urgent counter-UAV, SHORAD and C-RAM needs in the US and other geographies. Our orders in-hand have enabled us to increase our 2020 revenue guidance to over $70 million. As our end-markets become mainstream, we expect the growth to continue throughout the remainder of this year and into 2021. Our net cash level of $30 million is sufficient for our working capital and R&D needs to support our expected strong growth."

GUIDANCE:

RADA Electronic Industries sees FY2020 revenue of $70 million, versus the consensus of $66.64 million.

For earnings history and earnings-related data on RADA Electronic Industries (RADA) click here.

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