Benzinga | Aug 2, 2021 06:43AM EDT

Rada Stock Gains On Beating Q2 Earnings Estimates

* RADA Electronic Industries Ltd. (NASDAQ:RADA) reported second-quarter revenue growth of 61% year-over-year to $28.3 million, beating the consensus of $27.98 million.

* EPS improved to $0.20 from $0.02 in 2Q20, beating the consensus of $0.09.

* Gross profit increased 81% to $11.3 million. The gross margin expanded by around 400 bps to 40%.

* The operating income increased to $4.5 million from $0.6 million a year ago and the margin expanded by 1,230 bps to 15.9%.

* Adjusted EBITDA was $6.33 million, up by 262% Y/Y, and margin expanded by around 1200 bps to 22%.

* As of June 30, 2021, RADA had net cash and cash equivalents of $95.7 million compared to $35.8 million as of year-end 2020.

* The company strategically increased inventory levels to ensure the availability of components for ongoing production plans, with inventories at $31.95 million (+10% Y/Y) as of June 30, 2021.

* Price action: RADA shares traded higher by 1.84% at $13.27 in premarket on the last check Monday.