SMTC Corporation & Hot Topic Hit New 52-week High On Solid Earnings

SMTC Corporation & Hot Topic Hit New 52-week High On Solid Earnings

SMTC Corporation (USA)(NASDAQ:SMTX) shares gapped up On Thursday after the company reported solid fourth quarter earnings and lifted its outlook for the full year.

The company said that it earned 18 cents a share, down from a year ago profit of 28 cents share. Revenue during the quarter grew to $71.1 million from $64.63 million helped by increased demand from both existing and new customers, as well as from the recently completed ZF acquisition. Gross margin contracted by 2.2% to $8.70%.

Going forward, for the current quarter, the company projects to earn $0.17-$0.19 a share on revenue of $72-$74 million and adjusted EBITDA of $4.3 to $4.5 million.

Moreover, for the full year, the company lifted its profit forecast to $0.53 – $0.65 a share on revenue of $250-270 million, from its previous outlook of $0.47 – $0.59 a share on revenue of $240-260 million.

Shares of SMTX soared 12.40% to $3.72 after hitting a new 52-week high of $3.85 earlier in the session.

Hot Topic, Inc. (NASDAQ:HOTT) shares also soared after the company reported better than estimated fourth quarter results on reduced costs and also provided impressive outlook for the first quarter.

The company said that it earned $9 million or $0.21 a share, reversing a year ago loss of $0.6 million or $0.01 a share, topping analysts’ estimates of 20 cents a share. Although, revenue fell to $210 million from $212.4 million, but topped analysts’ target of $209.30 million. The company announced 14% dividend of 8 cents, rise of 14%.

For the current quarter, the company projects to earn 2-5 cents a share, well above the analysts’ target of breakeven. Hot Topic indicated the outlook as based upon a same-store sales increase in the mid-single-digit percentage range.

Shares of HOTT pooped up 97 cents or 10.97% to $9.76 after climbing to new -52 week high of $10.11 earlier in the session.