Technology Stock’s News Report: AstroNova Inc (NASDAQ:ALOT)

On Wednesday, AstroNova Inc (NASDAQ:ALOT) closed at $13.58 with trading volume of 5,914.00 shares. The company gained 0.61% with market capitalization of 107.26M. During the year the lowest point at which share traded is $12.40 and hit the highest point at $16.41.

AstroNova, Inc. (ALOT), a global leader in data visualization technologies, today stated record revenue for the fiscal 2017 fourth quarter and full year ended January 31, 2017.

Fourth quarter fiscal 2017 revenue raised 8 percent to $25.70M from $23.80M for the same period in 2016. Revenue for the full year raised 4 percent to $98.40M from $94.70M in fiscal 2016, notwithstanding the adverse effect in foreign exchange because of the strong dollar.

“We ended a year of growth in fiscal 2017 with a fourth quarter highlighted by raised revenue, improved operating margin and a stronger cash position,” said AstroNova President and Chief Executive Officer Greg Woods. “Revenue growth in our International markets was especially strong, up 27 percent over the prior year, demonstrating our planned focus on broadening AstroNova’s global reach through expansion in regions counting Asia and Latin America.

“Relative to the segment performance, our Product Identification Segment (PI) was a major contributor to the Company’s fourth quarter growth, achieving record quarterly revenues of $18.70M and increasing 13 percent over the previous year. PI’s success is definite to the record color printer placements in the quarter in addition to strong demand for consumables and specifically the launch of the QL-800, our new wide-format digital printing solution for industrial, commercial, manufacturing and distribution applications,” Woods continued. “Revenue in our Test & Measurement segment reduced 3 percent in the fourth quarter, mostly reflecting our transition to our next generation data acquisition products, and the timing of aerospace order releases.”

Recent Highlights:

  • AstroNova attained TrojanLabel ApS, a European manufacturer of digital color label presses and specialty printing systems for a broad range of end markets, for a purchase price of DKK 62.90M (about $9.10M). The acquisition was funded with cash on hand. After the fiscal year-end, a five-year fixed-rate debt arrangement was closed for 63 million DKK (about $8.90M) with an annual interest rate of 0.67 percent.
  • Boeing selected AstroNova’s ToughWriter® 640 flight deck printer for inclusion in the aircraft manufacturer’s B737NG and B737 MAX catalog. The ToughWriter® 640 is AstroNova’s first narrow format flight deck printer. It is used when space is at a premium to print a wide range of flight critical information, such as flight plans, ACARS messages and ground communications. AstroNova anticipates beginning shipping the printer in CY 2018.

“In TrojanLabel, we attained a complementary business with a product line that provides an exclusive value proposition for customers in the mini-press and specialty printing markets,” Woods said. “We are quite eager about integrating the talented TrojanLabel administration team, together with their innovative technology and outstanding product lines, into the AstroNova family.”

Gross profit margin rose to 39.30 percent in the quarter from 38.40 percent a year earlier, mainly because of changes in product mix. Gross profit margin for fiscal 2017 was 40.10 percent, contrast with 40.30 percent in fiscal 2016.

Operating income in the quarter was $1.20M, a 45 percent increase over the operating income of $0.80M stated in the prior year’s fourth quarter. Operating margin in the quarter was 4.50 percent, contrast with an operating margin of 3.30 percent for the previous year’s fourth quarter. Transaction costs associated with the TrojanLabel acquisition in the quarter were $0.60M.

On an annual basis, operating income for fiscal year 2017 was $6.30M, up 5.80 percent over the operating income of $5.90M stated for fiscal 2016. Operating margin in fiscal 2017 was 6.40 percent, up slightly over the prior year’s operating margin of 6.30 percent.

Net income was $0.80M, or $0.10 per diluted share, in the fourth quarter of fiscal 2017, slightly below the prior year’s net income of $0.80M or $0.11 per diluted share. Financial results for the fiscal 2017 fourth quarter were negatively influenced by costs associated with the acquisition of TrojanLabel.

For the 12 months ended January 31, 2017, net income was $4.20M or $0.56 per diluted share, contrast with $4.50M, or $0.61 per diluted share for fiscal 2016.

Cash and marketable securities were $24.80M at the end of fiscal 2017, contrast with $20.40M at the end of fiscal 2016.

Board Declares Quarterly Dividend:

On March 13, 2017, the Board of Directors of AstroNova, Inc. declared a regular quarterly cash dividend of $0.07 per share. The dividend, which represents a cash dividend of $0.28 per share on an annualized basis, is payable on March 30, 2017 to shareholders of record as of March 23, 2017.

Business Outlook:

Woods concluded, “In fiscal 2018, we remain focused on execution as we continue to grow our business through new product introductions and investments that will expand the addressable markets for our technology and increase our recurring revenue stream.”

Technical Analysis:

The Company has price-to-cash ratio of 1.07 and EPS ratio of 0.57. The company net profit margin is 4.40% and gross profit margin is 39.90%. The stock has shown quarterly performance of 0.59% and a half-year performance stands at -6.41%. The stock price is moving up from its 20 days moving average with 0.98% and isolated negatively from 50 days moving average with -0.77%.

Analyst recommendation for this stock stands at 1.00.

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