Can RADA Electronic Ind. Ltd. (NASDAQ:RADA) Deliver Better Results?

RADA Electronic Ind. Ltd. (NASDAQ:RADA) is in the business of providing radar solutions. The defense electronics contractor is based out in Netanya, Israel.

Technical analyst have identified strong buy signals in RADA.

3Q earnings results

On November 28, RADA Electronic Ind. Ltd. (NASDAQ:RADA) updated on its 3Q financial results and the first nine months of 2014. The company disclosed revenue of $4.8 million in 3Q, which signaled an increase of 8% from the same quarter in 2013. RADA made a gross profit of $1.3 million for the quarter, which was up 47% over the profit earned in the like quarter in the previous year. However, it had a net loss of $202,000 in the latest quarter, which was smaller than the net loss of $576,000 a year earlier. The improvement in the bottom-line was attributed to the decrease in overall expenses even though operating expenses increased 20%.

First nine months of 2014

For the first none months of 2014, RADA Electronic Ind. Ltd. (NASDAQ:RADA) generated total revenue of $16.6 million. Revenue was up 10% over the same period in 2013. Gross profit for the first nine months of 2014 was up 97% to $4.9 million. A decrease in expenses helped the company to post a net income of $338,000 for the first nine months of 2014, which was better than a net loss of nearly $2.7 million in the same period last year.

On December 4, RADA Electronic Ind. Ltd. (NASDAQ:RADA) announced that a ministry of defense ordered a range of its radar solutions. The company did not name the ministry of defense involved in the latest order but said the defense items will help with a wide range of threat detections that include rockets, UAVs and mortars. RADA expects to fulfill the order in 2015.

According to the company’s CEO, Zvi Alon, they believe that some other leading countries will come asking for their advance radar solutions.

Shares of RADA Electronic Ind. Ltd. (NASDAQ:RADA) have edged up over 150% since the beginning of this year. No reports of stock promotion have been cited in RADA.



The stock jumped 53.75% on a volume of 18.85 million shares, the average volume being 10,512 shares. The stock had a volume of 39.40 million shares in the month of September, when the 50-days Moving Average jumped above the 200-days Moving Average. The stock did see a fall after that, but managed to maintain its upward trend. In its yesterdays trading session the stock breached its the 50-dasy Moving Average. The RSI is 68.14, indicating further room for gains.

About the Author

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.

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