Eltek Ltd Reports Third Quarter 2024 Financial Results
Intellectia.AI
Eltek Ltd. Reports Third Quarter 2024 Financial Results
Petach Tikva, Israel, November 19, 2024 - Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of advanced printed circuit boards (PCBs), announced its financial results for the quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $13.5M | $11.9M | +14% |
| Operating Profit | $1.9M | $2.3M | -17.4% |
| Profit Before Tax | $2.0M | $2.6M | -23.1% |
| Net Income | $1.7M | $2.1M | -19% |
| Earnings Per Share (EPS) | $0.25 | $0.36 | -30.6% |
Interpretation : Eltek demonstrated strong revenue growth of 14% year-over-year, achieving $13.5 million in sales. Despite the increase in sales, net income and earnings per share declined, primarily due to the decrease in gross margin from exceptional conditions in the previous year.
Revenue Breakdown by Segments
While Eltek's earnings release did not provide detailed segment performance metrics, CEO Eli Yaffe noted robust demand from key customer segments, particularly in defense, aerospace, and medical devices. This indicates a strong alignment of their product offerings with market demand.
Key Developments and Operational Highlights
- Advanced an accelerated investment plan, with plans to open a new 15,000 sq. ft. manufacturing space equipped with a state-of-the-art Solder Mask Application line by the end of 2024.
- Cash and cash equivalents stood at $18.1 million as of September 30, 2024.
- Introduction of a dividend policy effective from 2024 year-end, allowing for an annual distribution of up to 25% of net income under US GAAP.
Comments from Company Officers
CEO Eli Yaffe emphasized the company's record sales for the quarter and the ongoing robust demand across its primary markets. He highlighted the company's proactive steps in expanding manufacturing capabilities to support future growth and profitability.
Dividends and Share Repurchase Program
Eltek's board has adopted a dividend policy to distribute up to 25% of net income, indicating a positive outlook on revenue and profitability growth.
Forward Guidance
The earnings release did not specify forward guidance figures, but the upbeat narrative and strategic plans for expansion signal confidence in sustained growth.
Stock Price Movement
Following the earnings announcement, Eltek's stock price showed a positive movement, increasing by 2.09%.
In summary, Eltek Ltd. has reported a quarter of robust revenue growth, underpinned by strategic investments and strong market demand, despite some fallbacks in net income and operating profits due to elevated prior year baselines.
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