Shares of CPS Technologies Corporation (CPSH), a company known for producing a combination of metals and ceramics, are currently being traded at $6.61 in the premarket. On Wednesday evening, the company’s stock closed at $6.99. This means that company is showing a losing trend in premarket, and since the closure of the market, has experienced a loss of 5.44%.
Results for Q2 of 2021
On Wednesday, the company announced the results for the second quarter of 2021. According to those, the company has earned revenue of $5.9 million. Besides, the operating profit of the company during this quarter stands at $0.25 million. The revenue company has earned during Q2 of 2021 is 20% higher than what the company has earned in Q1 of 2021, hence, an improvement in financials is easily observable.
Reliance on innovation
CPS Technology has pursued the policy to manufacture new and innovative products. Due to this reason, numerous government and private institutions trust CSP Technologies to manufacture their required products. In March, the company produced parts for MethaneSAT satellite program. Similarly, in May, the company received purchase orders for the production of armor panels to be installed on US Navy Aircraft carriers. All in all, the company is fast gaining the trust of customers, and hence, improving the potential of the company.
Previous trend of stock
Since July last year, CPS has gained a monumental increase in its share price. In mid of February, the company’s share price soared up to $26.89. This is the maximum share price the company achieved since it got listed on NASDAQ some two decades ago. During the last year, the company’s average share price has increased 156.99%, mainly due to that sudden growth in share price earlier during the year.
Performance during pandemic
One of the reasons for the success of CPS during times of pandemic is that it remained operational throughout the time of pandemic and kept functioning. The demand of new products remained low during the pandemic; hence, the revenue of the company generally remained stagnant. But with the ease in government restrictions and increased number of vaccinations, the company seems back on track to serve its clients.
What coming times hold in store?
Based on current trends, the future times look to be positive for CPS Technologies stock. According to analysts, CPSH earnings could rise about 240.80% during the current year. As the COVID situation gets better and economies around the world gain back their momentum, it is hoped that companies like CSPH Technology could enjoy flourishing times ahead. So, potential investors seeking to invest in CPSH stock should keep a close watch on the market situation.