This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CPI Aerostructures: Strong Quarter Possible

Several clues point to a very strong fourth quarter for CPI Aerostructures (CVU - Get Report).

First, throughout 2009, CPI issued guidance calling for net income of $3.9 million to $4.3 million and revenue of $42 million to $45 million.

Using midpoint figures and the company's 2009 nine-month financial results, the guidance implies earnings per share will increase 80% to 27 cents. Sales would rise 35.9% to $12.5 million.

Second, in conference calls, the company has repeatedly stressed that if it believed it could not meet its guidance, it would relay a message to Wall Street. Well, it is now the beginning of 2010, and management has not issued such a message, strengthening the possibility that the fourth quarter will be strong.

Lastly, the company issued a press release on Jan. 14 saying fourth-quarter order flow had intensified.

What I don't possess is specific information on the 2010 forecast the company will provide in conjunction with the 2009 year-end results. I generally prefer to invest in companies that are capable of achieving consistent 30% EPS growth, so I will eagerly await the 2010 guidance.

That said, CPI has offered additional clues indicating 2010 will be a year of growth:
  • In its 2008 fourth-quarter financial release, CPI offered insight into its long-term growth goals in sales and net income growth, saying that it expected to achieve a compounded annual growth rate for revenue from 30% to 35%. The company also said it expected compounded annual growth in net income of 50% to 60%.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CVU $6.90 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs