FTE Networks (NYSEMKT:FTNW) shares attain the new 52-week high of $20, thanks to the rally of more than 13% in Today’s trading. The move was supported by its strong financial numbers, and new contract wins.
FTNW shares rallied almost 150% in the last three months. The stock has the 52-week trading range of $8.75 to $20.26.
The US-based Company FTE Networks provides regional and international telecommunications, infrastructure services and technology systems.
FTE Networks Contract Wins Are Adding to Investors Sentiments
FTE Networks recently won a contract of $36 million from one of the largest financial institutions in the U.S. FTE Networks will provide technology, fit out services and infrastructure to support the enablement of future-ready smart and innovative workspaces.
Its CEO said: “This award furthers our mission to transform tenant experiences and address increasing tenant demands for advanced technology solutions and high-speed internet.”
Previously, the company has won three contracts valued at $61 million for the technology and infrastructure expansion. Excluding the latest contract of $36 million, the company’s backlog was standing at around $300 million by the end of the third quarter.
Strong Q3 Results Supports the Price Movement
Based on the preliminary results for the third quarter, its revenue increased 56% to $79 million, compared to the revenue of $50.7 million in the past quarter. The company’s gross margin improved 320 basis points to 19.6% in Q3, reflecting the strategy of investments in higher margin products.
Consequently, its operating earnings enlarged to $4.9 million in the third quarter of 2017, relative to the loss of $2.3 million in the second quarter of 2017.
“We continue to expand our footprint to new markets and to leverage the industry-leading position that our Benchmark subsidiary enjoys in the New York metropolitan region,” said Mr. Michael Palleschi, President and CEO of FTE Networks.
Overall, the company has been expanding its footprints in growth opportunities that offer higher growth and margins. The strong backlog and the potential to win new contracts could be the catalysts for the sustainable growth in the following quarters.
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