US stocks rebounded Wednesday after posting their worst session in nearly two weeks during the previous session as retail sales and producer prices data showed no significant pick-up in inflation. Today’s biggest movers and shakers on the Street belong to biotech firm Arcadia Biosciences Inc (NASDAQ:RKDA) and electronic component maker RF Industries, Ltd. (NASDAQ:RFIL). Let’s take a closer look:
Arcadia Biosciences Rockets After Achieving “Two Key Technology Milestones”
It’s a big day for Arcadia Biosciences. The company said it has achieved two key technology milestones in its High Fiber Resistant Starch (RS) Wheat program- news that had many, even some of the biggest bears on the stock, commending the headway Arcadia has made.
Specifically, through advanced screening and traditional breeding techniques, the company has developed non-transgenic (non-GM) wheat varieties that contain up to 94 percent amylose, the highest levels available. Increased levels of amylose correspond to high levels of resistant starch, which has been proven to deliver significant health benefits. In addition, these same wheat varieties deliver levels of total dietary fiber high enough to meet the threshold required by the US Food and Drug Administration for a “Good Source” of fiber or “High in Fiber” designation on consumer packaging.
In reaction, Arcadia shares are skyrocketing nearly 108% to $24.30 in Wednesday trading session.
Arcadia CEO Raj Ketkar commented, “These milestones are key achievements in the commercial launch plan for our non-GM wheat ingredients portfolio, delivering health benefits to consumers and distinct market differentiators to consumer packaged goods companies […] Arcadia’s new wheat varieties will allow people to enjoy the foods they love with the health benefits of resistant starch and dietary fiber, while satisfying consumer demand for clean-label, natural foods.”
Arcadia is working with a select number of consumer packaged goods companies on new, healthier formulations of existing products using both enriched and whole wheat RS Wheat flour. The company is preparing for an increase in acres planted during the upcoming US wheat growing season.
RF Industries, Ltd. Soars on Solid FQ1 Results
RF Industries is a mover and shaker out on the Street today, with investors sparking the stock on an almost 43% upturn. Why the excitement? The company delivered fiscal first-quarter results that crushed Wall Street’s expectations in an upside surprise.
Specifically, net sales for the first quarter of fiscal 2018, typically the Company’s seasonally weakest quarter, increased 56% to $10.3 million compared to $6.6 million in the first quarter last year. Net sales at the Custom Cabling Manufacturing and Assembly (Custom Cabling) segment increased 89% to $7.7 million from $4.1 million in the first quarter last year. Custom Cabling accounted for 75% of total sales in the quarter and benefited from higher sales of various types of custom cabling, fiber optic cable, copper cabling, custom patch cord assemblies, wiring harnesses, transceivers/converters, and other data center equipment. The RF Connector and Cable Assembly (RF Connector) segment sales, which accounted for 25% of first quarter sales, increased 4% to $2.6 million from $2.5 million in the first quarter last year.
Gross profit for the first quarter of fiscal 2018 increased 65% to $3.1 million from $1.9 million and improved to 30% of sales from 28% of sales in the same quarter last year due primarily to the increased revenues at the Custom Cabling segment.
Net income for the quarter was $0.5 million, or $0.05 per diluted share, compared to a net loss of $0.2 million, or $0.02 net loss per share, in the first quarter of fiscal 2017.