Schmitt Industries, Inc. (SMIT) Shares Erupted 74% After Earnings


Shares of Schmitt Industries, Inc.(NASDAQ:SMIT) erupted for over 70% gains soon after the market opened today, in response to the company’s fiscal second quarter earnings report, which crushed Wall Street expectations.

For the three months ended November 30, 2017, total sales increased $1,115,319, or 42%, to $3,770,880 from $2,655,561 in the three months ended November 30, 2016. Net income was $103,248, or $0.03 per fully diluted share, for the three months ended November 30, 2017 as compared to net loss of $382,470, or $(0.13) per fully diluted share, for the three months ended November 30, 2016.

Balancer segment sales focus throughout the world on end-users, rebuilders and original equipment manufacturers of grinding machines with the target geographic markets in North America, Asia and Europe. Balancer segment sales increased $833,180, or 59.6%, to $2,230,846 for the three months ended November 30, 2017 compared to $1,397,666 for the three months ended November 30, 2016. Balancer segment sales increased $1,342,701, or 45.4%, to $4,301,243 for the six months ended November 30, 2017 compared to $2,958,542 for the six months ended November 30, 2016.

Gross margin for the three months ended November 30, 2017 increased to 45.8% as compared to 38.9% for the three months ended November 30, 2016.  Gross margin for the six months ended November 30, 2017 increased to 45.6% as compared to 43.4% for the six months ended November 30, 2016.

Schmitt CEO commented, “We are encouraged by our sales results for the quarter with Balancing segment sales in excess of $2 million again this quarter and Measurement segment sales up relative to the same quarter last year […] We are working diligently to achieve profitability on a consistent basis in the second half of Fiscal 2018,” Hudson concluded.

Schmitt engages in the design, manufacture, and trade of measurement and process control systems. It operates through the Balancer and Measurement segments. The Balancer segment develops balancing systems and components for the machine tool industry. The Measurement segment assembles laser-based test and measurement solutions. The company was founded by Wayne A. Case in 1987 and is headquartered in Portland, OR.

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