Morning Update: Schmitt Industries, Inc. (NASDAQ: SMIT)

Schmitt Industries, Inc. (NASDAQ: SMIT) the stock changed +4.19% to recent value of $2.2400. The trading volume was recorded to 3,105 shares as compared to average traded volume of 7,223 shares. SMIT stock price showed strong performance of 2.75% in last seven days, switched up 3.70% in last thirty days and it rose 1.82% in last one year. It has 4.14 million of outstanding shares and its shares float measured at 3.29.

Schmitt Industries, Inc. (SMIT) recently reported its operating results for the third quarter of Fiscal 2019.

Highlights of the three and nine months ended February 28, 2019:

  • Total net sales for the Company reduced 4.8% and 0.7% for the three and nine months ended February 28, 2019, respectively, as contrast to the three and nine months ended February 28, 2018.
  • Gross margin was reduced from 46.1% to 32.8% for the third quarter of fiscal 2019Because of an inventory reserve adjustment of $407,558. This adjustment was the outcome of reorganization efforts to evaluate the types and levels of inventory maintained across the Company’s three product lines.
  • Operating expenses raised 12.1% and 0.8% for the three and nine months ended February 28, 2019, respectively, as contrast to the three and nine months ended February 28, 2018. These results include non-recurring reorganization, legal and other professional expenses of $292,888 and $637,447 incurred during the three months and nine months ended February 28, 2019, respectively, that were not incurred during the same periods in the previous year.
  • Net loss per fully diluted share, or EPS, was $(0.12) and $(0.24) for the three and nine months ended February 28, 2019. 
  • Non-GAAP EPS was $0.06 and $0.03 for the three and nine months ended February 28, 2019.

Michael Zapata, Executive Chairman and President, commented, “Since announcing the reorganization on November 27, 2018, the Schmitt team has invested planned-ally in our people, technology, and client relationships, to continue delivering industry leading quality and service in our SBS®, Xact® and Acuity® business lines. We are starting to see the impacts of our focus on high return on investment priorities and improved profitability as non-GAAP EPS improved on a year over year basis. We expect GAAP financials to start to normalize in the fourth quarter of Fiscal 2019 as the team continues to execute across our three product lines and we target under served markets while continuing to grow alongside our valued consumers.”

(SMIT) price volatility for a month noted as 1.94% however its price volatility for a week documented as 2.34%. EPS growth for this year is 117.00%. EPS growth in past five years was 22.10%. Sales growth past 5 years was measured at 2.20%.

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