RF Industries (NASDAQ:RIFL) stock soared to an all-time high of $3.15 per share in Wednesday trade. The reason? The company’s fourth-quarter results. In addition, traders increased their bullish bets on RIFL stock, supported by the rosy outlook for FY2018. Currently trading around $3.10 per share, the stock is up almost 20% in a single day. Including the latest rally, RF Industries shares increased 52% in the last twelve months.

RF Industries stock is currently trading at only 1.1 times to book value and 0.8 times to sales, when the industry average is standing at 2.8 and 1.9 times, respectively.   

In the final quarter of 2017, its sales enlarged 10% to $8.9 million, compared to the same period last year. The company’s RF Connector and Cable Assembly segment generated sales growth of 22%, compared to the final quarter last year.

It’s Custom Cabling and manufacturing segment also generated a steady growth of 4% to $5.5 million, relative to the previous year quarter.

On the other hand, RF Industries strategy of investing in high margin products and lowering operational expenses seems to be working. In the final quarter, its gross margin increased to 37%, while selling and general expenses declined by 12% over the prior year period.

Consequently, the company generated earnings per share of $0.03 in Q4, compared to the loss of $0.34 per share in the last year quarter.

The CEO stated, “We have built significant momentum in the last several months which has helped create some very positive energy within the Company.  We remain optimistic about our ability to leverage new go-to-market strategies and channel models to deliver continued profitable growth.”

RF Industries expects to extend the momentum in the following quarters, supported by the strategy of investing in high growth businesses. The management indicated a double-digit sales growth for the first quarter of FY2018, due to strong demand for its RF Connector and Cable Assembly products.

The company also offers strong dividends to investors. It currently offers a quarterly dividend of $0.02 per share, yielding around 3%. The dividend appears safe considering the cash balance of $6.0 million and the potential growth in revenue and earnings.

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