Why Clearfield Stock Jumped 26% Today

Why Clearfield Stock Jumped 26% Today
Why Clearfield Stock Jumped 26% Today

What happened

Actions of the fiber internet specialist Free field (CLFD 25.97%) jumped 28.2% in early trading Friday after the company released its third-quarter 2022 financial results. As of 12:37 p.m. ET, the stock was up 26%.

So what

Revenue climbed 110% from a year ago to $95 million, including $7 million from the acquisition of Nestor Cables, and net income rose 129% to $17 million. dollars, or $1.22 per share. Analysts had expected $71.4 million in revenue and $0.86 in earnings per share, so the results were much better than expected.

Management said the backlog stood at $165 million and expects the first half of 2023 to be strong. There is uncertainty over the second half of the year as customers scramble to find enough staff to expand networks, but forecasts are still for revenues of $380-393 million in 2023, which would be up 40-45% from this year.

Now what

The demand for high-speed Internet in the communities served by Clearfield is clearly growing. The company has also increased its manufacturing capacity to meet customer demand.

One thing to watch over the next few quarters at Clearfield is inventory and debt. The company’s inventory was $82.2 million at the end of the third quarter, down from $27.5 million a year ago. And debt and long-term lease liabilities increased from $1.6 million to $39.1 million.

That said, Clearfield is banging on all cylinders and it’s no surprise that stocks are up today.

Travis Hoium has no position in the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.

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. Why Clearfield Stock bondi today

. Clearfield Stock Jumped Today