Company description

Thu, 13 Sep 2018 13:22:52 GMT

Espey Manufacturing & Electronics Corp designs, develops, tests and manufactures specialized military and rugged industrial power supplies and transformers for use in harsh or severe environment applications. Its products and solutions include power converters, power conditioning, high voltage radar, contract manufacturing and custom engineering etc. The applications of these products include Ac and Dc locomotives, shipboard power, shipboard radar, airborne power, ground-based radar and ground mobile power.

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Thu, 13 Sep 2018 16:21:48 GMT

Espey Mfg. & Electronics Corp. (NYSEAMEX:ESP) ($26.49; $63.1M market cap), a specialized military and industrial power supplies/transformers company announced Q4 2018 results:

Sales of $7.8 million vs $5.4 million in the prior year
EPS of $0.29 vs $0.08 in the prior year
New orders of $37.5 million vs $26.7 million in the prior year
Company declared a special cash dividend of $1.00

“Our strong financial performance continued during fiscal year 2018 with improvement in all areas as compared to fiscal year 2017. As I commented last quarter, successful conversion of engineering program backlog into sales is largely dependent on the execution and completion of our engineering design efforts. The investments we have made in talented people and infrastructure are contributing to our successes; however there will always be areas for improvement. We are nearing the successful completion of our facility refit, which will provide us enhanced capabilities to drive future growth. We are looking forward to a successful fiscal year 2019.”

We have been watching ESP to see if growth could achieve some level of consistency. The Company reminds us of on of our holdings, Eastern Company (NASDAQ:EML), as it is a boring company that has been around forever. Over the last several years the Company has reported very lumpy quarters but we are starting to get intrigued by some business developments with the company and the increase in backlog. We plan to interview management to determine if there is reason to believe that the Company is finally in position to achieve consistent business growth moving forward as opposed to lumpy growth which has been its standard for many years.

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Company description

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