Clearfield, Inc. (CLFD) Stock Surging in Premarket, Here’s Why

Clearfield, Inc. (CLFD), a company that manufactures, markets and sells standard and custom passive connectivity products, has surged 11.41% in premarket trading session and consequently is trading at $54.20 at the time of the writing. During Thursday’s regular trading hours, the stock declined by 3.15% and closed the day at $48.65. The surge in premarket could be attributed to record Q1 2022 results.

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Q1 2022 Operational Results

In the late hours of Thursday, CLFD released the operational results for first quarter of fiscal year 2022. The quarter ended on 31st December 2021. The company generated net sales of $51 million during the quarter against $27 million for the same quarter of fiscal 2021. The gross profit for the three month period stood at $23 million against $11.4 million for the same three month period of fiscal 2021. The net income generated by the company during the period was $10.4 million (or $0.75 per basic and diluted share) against $3.2 million (or $0.23 per basic and diluted share) for the same period of fiscal year 2021.

Financial Performance

Alongside, CLFD also released the financial metrics for the period ended 31st December 2021. The company had cash and cash equivalents of $12.6 million on 31st December 2021. The total current assets in possession of the company on the said date were $84 million, while the total assets were estimated to be $137.7 million. Similarly, the total current liabilities payable by the company on the said date were $22 million, while the total liabilities were estimated to be $23.2 million. The total shareholders’ equity on the said date was $114.4 million.

Executive Commentary

While commenting, President and CEO of CLFD, Cheri Beranek said that the company has delivered another record-setting financial performance in the aforementioned quarter. It is doing so in a market that is evolving and growing with each passing quarter. The company is well-positioned to continue benefitting from the growing demand for fiber to the home and fiber to the business as a result of its commitment toward its customer base.

Future Outlook for CLFD

Last one month has seen CLFD stock falter by approximately 40%, the reasons being both market-related and company-specific. Looking ahead, the analysts believe that the stock holds several negative signals and despite of some positive developments, it is expected to perform weakly in next couple of weeks.