IEC Electronics Corp. (IEC) stock prices skyrocketed by 47.47% shortly after market trading commenced on August 12th 2021. This brought the price per share up to USD$15.35 early on in the trading day.
Definitive Merger Agreement
August 12th, 2021 saw IEC stock report the announcement of the signing of a definitive merger agreement with Creation Technologies Inc. as per the agreement, the partnering company will acquire all outstanding shares of IEC. The transaction saw each share being priced at USD$15.35, with the entire transcaction being complete in cash. The new came in conjunction with financial reports for the third quarter of fiscal 2021.
IEC Stock Financials
IEC stock reported revenues in the amount of USD$49.4 million for the third quarter of fiscal 2021. This is a 4.2% increase from the USD$47.4 million reported for the prior year quarter. Gross profit for Q2 2021 came out to USD$5.2 million, making up 10.6% of sales for the quarter. This is up from the USD$6.6 million as of Q3 2020, representing 14% of total sales for the quarter. Operating profit came out to USD$1.9 million for the third quarter of 2021, up from the USD$3 million reported for the prior year quarter.
Overcoming Pandemic Challenges
The company reported solid revenue growth for the 2021 quarter despite the headwinds faced by the entire industry. IEC stock was not exempt from the ongoing material shortages and labor constraints. The company continued to ramp up multiple exciting new programs over the course of the quarter. Given the complexity of the programs being serviced, IEC’s ramping process was not linear. It frequently included process development adaptations which continue to impact profitability.
IEC Stock’s Promising Growth
Once established, however, IEC stock expects the programs to provide considerable long-term revenue and margin opportunity. As the world strives to return to pre-pandemic levels of economic functioning, IEC is encouraged by the increased backlog of 2021. The 2021 backlog was higher than numbers reported for the prior year period. The company was also encouraged by a solid book to bill ratio of 1.76:1 in Q3 2021, inclusive of a contract extension valued at more than USD$45 million.
Future Outlook for IEC Stock
Armed with its recent promising developments and strong financials, IEC stock is poised to capitalize on the opportunities afforded to it. The company is keen to leverage the resources at its disposal. Investors are hopeful that this will facilitate significant and sustained increases in shareholder value.
