RADA Electronic Industries (RADA) Tops Q3 EPS by 3c, Revenues Beat

RADA Electronic Industries (NASDAQ: RADA) reported Q3 EPS of $0.05, $0.03 better than the analyst estimate of $0.02. Revenue for the quarter came in at $20.4 million versus the consensus estimate of $18.3 million.

Highlights of the third quarter of 2020

• Quarterly revenues up 81% year-over-year to a record $20.4 million;
• Gross margin increases to 38% from 36%;
• Net income of $2.1 million and adjusted EBITDA of $3.1 million – 15% of revenues, compared to adjusted EBITDA of $1.7 million and 10% of revenues in previous quarter;
• 2020 revenue guidance increased to over $75 million, implying over 70% growth year-over-year.

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 unprecedented improvement across all financial parameters. The increased production volumes and manufacturing efficiencies are yielding higher gross margins, currently at 38%. Our strong revenue growth, improved gross margins and stabilizing operating expenses are yielding strong EBITDA growth which reached 15% of revenues this quarter."

Continued Mr. Sella, "Our orders in-hand have enabled us to increase our 2020 revenue guidance to over $75 million. Our recent orders are starting to build significant backlog for 2021, substantiating our growth outlook. We expect our financial parameters to continue to improve throughout the remainder of 2020 and into 2021."

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

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