While U.S. stocks are tanking in early trade Wednesday, Cemtrex Inc (NASDAQ:CETX) shares are soaring nearly 40%, after the industrial firm announced that it has received more than $21 million in new orders during the month of April, including contracts with PPG, Covanta, US Mint, Mitsubishi Heavy Industries and Kelvion, just to name a few.
One of the orders Cemtrex secured during the period is a three year agreement estimated to be worth $15 million for Cemtrex’s electronics manufacturing services business in Germany. The order is the largest single order ever placed with the Company. The remaining orders were split approximately even between the IPS and EMS segments and are expected to be executed over the next twelve months.
Cemtrex’s Chairman and CEO, Saagar Govil, commented, “We are experiencing a build out of customer activity as our sales and marketing team ramps up their outreach. The activity we are seeing in our sales pipeline validates our expanded investments in sales and marketing activity over the past several months. Our plan is to continue to make investments in these areas of our business in order to take advantage of the additional bandwidth we have to grow.”
“A great example of how our sales team is building relationships with customers is a $15 million deal we just secured with an existing customer operating in information technology markets. While we have worked with this company previously, this is the largest deal to date and it spans a three year period, which far exceeds the commitment this customer has shown us in the past. Our goal is to have our sales team build off these types of customer wins in order to grow the business, while establishing greater visibility for the business.”
On the ratings front, Taglich Brothers analyst John Nobile reiterated a Hold rating on CETX, in a report issued on February 28. According to TipRanks.com, Nobile has a yearly average return of 7.4%, a 56% success rate, and is ranked #1758 out of 4566 analysts.
Cemtrex, Inc. provides electronic manufacturing services of custom engineered advanced electronics system assemblies, emission monitors and instruments for industrial processes and environmental control and air filtration systems for industries and utilities. It designs, develops, and manufactures various interconnects and cable assemblies; and provides engineering services, including new product introductions and prototyping, related testing equipment, and product redesigns. The company also manufactures, sells, and services monitoring instruments, software, and systems for measurement of emissions of Greenhouse gases, hazardous gases, particulate, and other regulated pollutants used in emissions trading, as well as for industrial processes; and markets monitoring and analysis equipment for gas and liquid measurement for various downstream oil and gas applications, as well as industrial process applications. In addition, it offers air filtration and environmental control equipment to industries, such as chemical, cement, steel, food, construction, mining, and petrochemicals; instruments for emissions monitoring, process analysis, and controls for industrial applications; and laser opacity monitor that is used to determine opacity or dust concentration in stack gases.