Industrial Services Of America (IDSA) Posts Strong Earnings, Shares Surge

It’s been an up and down few months for shares of Industrial Services of America (IDSA), which recycles metals and helps companies manage waste.  In February, the company issued guidance that wasn’t as strong as traders were looking for and the stock plummeted.  This morning the stock is popping around 17% after the company released earnings results that were at the top of the range of previous guidance.  In February the EPS guidance was .25 – .29/share on revenue between $96 – $101.  The company has reported  an EPS of .29/share which matched the analyst estimate on revenue of $99.5 million which exceeded the analyst estimate of $87 million.

Chairman Harry Kletter commented: “2010 was another great year. Our sales have grown at a compound annual rate of 85% per year for each of the last two years, increasing from $100 million in 2008 to $181 million in 2009 to $343 million in 2010. This has occurred during one of the most difficult economic times since the 1930’s. We ended 2010 with a strong balance sheet, including a current ratio of 3.6-to-1 and low leverage.

Despite today’s run, shares of IDSA still remain technically weak and submerged below resistance of the 50 and 200 day moving average.  The 50dma is being tested this morning. 

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