Saturday, July 12, 2014

IEHC Reports Higher 2014 Earnings

Price$ 5.00
Market Cap$ 11.51 M
P/E TTM7.9 x
Div yield0.0 %
ROE14.4 %
IEH Corp (IEHC) recently reported 2014 results. Revenue was $15.4 M versus $13.3 M the previous year. Income was $1.5 M versus $0.9 M the previous year. Gross margin was 35.9% which improved from 31.9% in the previous year. The stock trades about 70% higher than when I bought it 17 months ago because of these numbers.

The only negative is that all the yoy earnings increase came in the first half of the fiscal year. The revenue was better in the second half versus a year ago. However, the earnings didn't improve yoy because of higher SG&A expenses. But then again I wouldn't read too much into the quarter by quarter fluctuations. This is a very small company after all and an extra business trip would have an impact on the bottom line.

I am holding this baby long-term because it has potential for significant gains in the coming years.

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