Professional technical and consulting services provider,
Willdan Group, Inc.
) touched a new 52-week high of $11.67 per share yesterday, before
closing the session at $11.25, up 7.4%. The momentum gathered was
driven by the company's better-than-expected results in
second-quarter fiscal 2014, along with a recent contract extension.
The stock has been on uptrend, gaining around 53% since the
announcement of the results on Aug 7.
Willdan reported earnings of 25 cents per share in second-quarter
2014 which easily surpassed the Zacks Consensus Estimate of 14
cents by 78.6%, and rose nearly threefold from the prior-year
quarter figure of 9 cents. The company also reported a year
over year increase of 31.6% to $27.0 million in its total contract
revenues. The company's strong fundamentals, along with a
persistent focus to expand its service offerings and geographical
presence, acted as growth drivers. Apart from this, improved
economic environment was also a positive for Willdan in the
The positive estimate revisions in the last 30 days led to an
increase in the Zacks Consensus Estimate for 2014 and 2015.
For 2014, it increased 18.6% to 76 cents, while surging a robust
51.7% to 91 cents for 2015.
Moreover, the stock looks even more attractive as the impressive
second-quarter 2014 performance pushed Willdan to a Zacks Rank #1
(Strong Buy) recently.
Also, the company recently announced that its subsidiary - Willdan
Energy Solutions has received a $22.3 million contract modification
from Con Edison. Per this deal, the earlier Small Business Direct
Install (SBDI) contract has now been extended to include a number
of Con Edison's customers, increasing the total contract value to
$61.3 million. The extension of this contract also reinstated
investors' confidence as it reflects the company's abilities to
retain and expand its customer base by providing high-quality
Other Stocks to Consider
Some other worth considering stocks in the same sector include VSE
), AO Smith Corp (
) and North American Palladium Ltd. (
). All three stocks carry a Zacks Rank #2 (Buy).
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