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Clearfield Dials Up Triple-Digit Gains In Five Months

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Telecommunications equipment maker Clearfield Inc. (CLFD) featured on our 'Small Stocks - Big Potential' section on July 24, 2020, when the company reported upbeat Q3 results. The stock reached a 52-week high of $37.54 on January 26, 2021, representing a gain of 122.9% from our published price of $16.84.

Clearfield manufactures, markets, and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises, and original equipment manufacturers markets in the United States and internationally.

Latest Q1 Results

On January 28, 2021, the Minneapolis, Minnesota-based company reported first-quarter net income of $3.2 million, a jump of 531% from the prior year's net income of $0.5 million. On a per share basis, earnings climbed 475% to $0.23 from $0.04 earned a year ago.

Net sales for the quarter surged 40% to $27.1 million from $19.4 million last year, largely due to double-digit increases from the company's Community Broadband and Multiple-System Operator (MSO or Cable TV) markets, which were up 71% and 30%, respectively.

At the end of the first quarter of fiscal 2021, the company's cash, cash equivalents and short-term and long-term investments increased to $54.4 million compared to $52.2 million as of the prior quarter end.

Clearfield said it has no long-term debt obligations as of December 31, 2020 or September 30, 2020. Company backlog increased 55% to $8.9 million at the quarter end versus the prior year period.

Looking ahead...

The company stated that it is "...confident the demand for fiber-fed broadband will continue throughout fiscal 2021 and beyond."

Nearer term, Clearfield expects Q2 to be consistent with the "traditional seasonality of revenue" being slightly down on a sequential basis. Longer term, the company said its "enhanced 'Comes of Age' Plan, which targets growth in fiber-fed broadband and 5G access fiber positions us for continued success for Clearfield in the years ahead."

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