They beat the estimate of $17.84. They said on last CC that there would not be sequential Q increase due to seasonality so this number is good! They also are announcing a new ClearAg deal! Nice!!
If they can push towards Xcede, we could one day be talking about a competitor with Evarrest. Huge, given the price paid for Evarrest and the investment for the plant in Ireland that will produce it.
This is a long term project. They need to show they have some staying power. Xcede is 3-4 years away and some of the RMD projects may be a 2017 thing.
Quarterly results are always important but especially so in the context of what it implies about long term sustainability.
The day's price is for short term holders. Actually being the type of company that can get these significant projects to market is imperative for anyone looking for a ten bagger.
So the CC will be important.
One positive is money flow. Since 1-21 there has been a remarkable divergence. Hopefully money flow- coupled with that follow up, high volume up day on 1-22- is in expectation of a decent Q.
Since the high of 9-22 there has been no money flow divergence ----until now.
Hilger should contribute to operating profits, continued, consecutive, sequential top line growth and cash flow beginning this Q.
That will help them stay the course on Xcede and it keeps irons in fire for commercializing products through RMD for next year. CC should be interesting.
In the back of every investor's head is the prospect of a $10 or even $20 stock 3 or 4 years out. That implied idea can be dangled out there as something attainable as long as they can keep those income and cash flow statements a stabilized.
So Hilger contract came at a good time.