Zacks Investment Research downgraded
Omnitek Engineering Corp. (
) to a Zacks Rank #5 (Strong Sell) on Sep 21.
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OMNITEK ENGINRG (OMTK): Get Free Report
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Why the Downgrade?
Weak financial results for the second quarter 2013 reported by
Omnitek Engineering on Aug 12, 2013 led to the downward revision
in earnings estimate. In the last 60 days, the Zacks Consensus
Estimate for year 2013 has been revised from 4 cents loss per
share to 5 cents loss per share. Earnings estimate for 2014 were
pegged at 12 cents.
Omnitek Engineering reported 2 cents loss per share in the second
quarter, down compared with the Zacks Consensus Estimate of 1
cent loss per share. Revenue at $197 million was down 48.2% year
over year as the operations were largely impacted by disruptions
caused by relocation to a larger facility.
Gross profit in the quarter plummeted 76.9% year over year while
gross margin at 27.1% reflected 3360 basis points decline.
Talking of Omnitek Engineering's liquidity position, cash balance
stood at $1,998.5 million, down 37.4% from $3,192.8 million at
the end of Dec 31, 2012.
Other Stocks to Consider
Omnitek Engineering Corporation develops and sells new natural
gas engines and engine management systems for gaseous fuels. The
company was founded in 2001 and is headquartered in California.
Currently, it has a $50.6 million market capitalization.
Other companies to watch out for in the industry are
), each holding a Zacks Rank #1 (Strong Buy) while
DXP Enterprises, Inc.
) has a Zacks Rank #2 (Buy).