Monday, February 17, 2014

IEHC Reports Disappointing Q3

Price$ 4.50
Market Cap$ 10.36 M
P/E TTM7.7 x
Div yield0.0 %
ROE13.8 %
IEH Corp stock tanked 20% on disappointing Q3 earnings. Ouch!

The stock has been up some 100% since I bought it because earnings have doubled yoy for the last few quarters. Well that trend did not continue. In fact Q3 earnings were down to $0.08 from $0.11 from a year earlier. Revenues were up 12%, less than the earlier two quarters. Gross margin was a few percentage lower. But Q3 SG&A was $143k higher than last year, due to increased travel expenses. These three factors resulted in the drop in income.

Looking back I of course wish I had sold the stock at its all time high of $6. Now, I'll just wait for next quarter to improve and hope this quarter was just a blip.


  1. I feel the same way. It would be great to be able to sell at the top and buy at the bottom, but that's impossible. If IEHC would have continued its streak of increasing earnings, growth investors might have really piled in and we would be kicking ourselves for selling. I'm still holding the stock myself.

    I do wonder why travel expenses increased so much this quarter and when the new product line they have been talking about for a few quarters will be introduced:

    "A new product line featuring high density connectors is being added to the Company’s product offering. This offering should
    be available within the next few months. The Company expects the new product line to bring additional revenue."

    NeverLoseMoney (

  2. Hey good to hear from you again....

    I don't think one should read too much into the COGS and SG&A numbers. The key is that iehc has uninterrupted sales increases.... and that is w/o this product offering we keep hearing about.....

    It looks like its hitting $5 soon....