Optical Cable Stock Doubles To 2-Year Highs As Company Swings To Profit In Q4: Retail Eyes More Upside
By Stocktwits Inc | First Published Dec 24, 2024, 12:21 AM ISTDespite a tough year, Optical Cable’s Q4 profit and sequential sales growth drove its stock to a two-year high.
Shares of Optical Cable Corp. (OCC) soared 147% in midday trading on Monday, marking more than a two-year high, after the company reported a return to profitability in its fiscal fourth quarter.
The stock was among the top trending tickers on Stocktwits and among the top five gainers on the platform.
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The fiber optic and copper data communication cable manufacturer posted net income of $373,000 for the fourth quarter, a significant turnaround from the $1.3 million net loss recorded in the same period a year ago.
Gross profit climbed 68.6% to $6.5 million, reflecting improved operational performance.
Consolidated net sales rose 12.4% to $19.5 million, compared to $17.3 million in the prior-year quarter. Optical Cable attributed the growth to higher sales in enterprise and specialty markets, which have shown resilience despite broader macroeconomic challenges.
This marks the fourth consecutive quarter of sequential net sales growth for Optical Cable, a trend the company anticipates will continue into fiscal 2025.
Despite the positive Q4 results, Optical Cable reported a net loss of $4.2 million for the full fiscal year 2024, compared to net income of $2.1 million in fiscal 2023.
The company cited industry-wide market weakness that persisted through most of 2024, impacting sales during the first three quarters.
Looking ahead, Optical Cable expressed optimism about further sales growth opportunities in fiscal 2025, as market conditions stabilize and demand improves in its core markets but did not issue any specific guidance.
According to an ongoing poll on Stocktwits, most retail investors feel that OCC has room to grow further, though around one-third remain uncertain about the recent surge.
Several users described the stock as a strong long-term investment opportunity.
With Monday’s gains, Optical Cable’s stock is now up over 90% year-to-date.
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