Among the many companies to have declared third-quarter financial results on Thursday, one of the more notable ones was that of OPTEC International Inc (OTC:OPTI). The market reacted positively to the company’s performance in the third quarter and the stock rallied by as much as 18% on Thursday. It remains to be seen if the stock can add to its gains today, however, it could be a good time to have a look at OPTEC more closely.
In order to get an idea about the company, a good place to start is by taking a look at OPTEC’s performance for the quarter ended on September 30 this year. The company, which is known for distributing the OPTEC Fuel Maximizer globally, reported Q3 2020 revenues of $337 million.
It represented a significant year on year jump from $249 million in Q3 2019. Moreover, the revenues rose handsomely on a sequential basis as well. In the previous quarter, OPTEC had generated $257 million in revenues.
The gross profits came in at $324 million, which was again substantially higher than the $92 million generated in the year-ago period. More importantly, OPTEC also managed to reduce its losses and bring its earnings per share to $0. In the year-ago period, the earnings per share had been negative $0.25.
It is also necessary for investors to note that OPTEC has also moved into the PPE (Personal Protection Equipment) space in light of the coronavirus pandemic. Earlier in November, the company announced that it bagged a major contract with an unnamed international commodities consortium for supplying Brand Specific PPE.
It is a huge contract for OPTEC and its total value stands at more than $2 billion. It goes without saying that it marks a major milestone for OPTEC and it remains to be seen if the company can sign up similar contracts in the future.
At the time, the Chief Executive Officer of OPTEC Roger Pawson stated that the company had been working on the deal for more than a month and hence quite pleased to have eventually closed it.
Pawson also stated that the company signed another contract for transporting certain products to clients in the healthcare sector. This contract was signed with an unnamed Logistics and Freight company. Considering the latest rally in the stock it is likely that the OPTEC stock is going to be in focus among investors today.
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