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CPS Technologies: A Turnaround Story in the Making!

Wesley ParkWednesday, Mar 12, 2025 5:51 pm ET
2min read

Ladies and gentlemen, buckle up! We've got a stock that's on the cusp of a major turnaround, and you need to pay attention. cps technologies corporation (NASDAQ:CPSH) just announced its fourth-quarter 2024 financial results, and the numbers are a mixed bag, but the story is one of resilience and innovation. Let's dive in!



The Numbers: A Tale of Two Quarters

First, the bad news: Revenue for the fourth quarter of 2024 was $5.9 million, down from $6.7 million in the prior-year period. That's a hit, no doubt, but it's not all doom and gloom. The decrease reflects the completion of the HybridTech Armor® contract with Kinetic Protection for the U.S. Navy, a significant revenue driver. But here's where it gets interesting: revenue rose 40% sequentially from the third quarter, thanks to an added third shift and increased production capacity. That's right, folks—CPS is back in the game!

The Strategy: Diversification and Innovation

CPS isn't just sitting back and hoping for the best. They're actively pursuing new opportunities and expanding their product portfolio. They've secured three new Phase I SBIR contracts with the U.S. Army, each valued at $250,000 over six months. Two of these contracts address advanced challenges related to artillery, and the third aims to enhance fuel efficiency and extend the operational range of military vehicles using the Company’s Fiber Reinforced Aluminum (FRA). And if that wasn't enough, they've also announced their first commercial sale of radiation shielding. This is a company on the move!

The Outlook: Bright and Shiny

Brian Mackey, President and CEO of cps, had this to say: "As we enter 2025, we are achieving critical milestones as we execute our plan to leverage our unique materials capabilities and bring new products to market." He's talking about growth, growth, growth! With an ongoing $13.3 million power module contract and a higher backlog, CPS is positioning itself for stronger results going forward. The future looks bright, folks—really bright!

The Challenges: Not All Sunshine and Rainbows

Now, let's talk about the elephant in the room. The company reported a gross loss of $0.3 million, or (4.6) percent of revenue, and an operating loss of $1.3 million. That's a tough pill to swallow, but it's important to remember that these losses are largely due to temporary factors like training and startup expenses related to the initiation of a third shift of operations. This is a company investing in its future, and that's something you want to see!

The Bottom Line: Buy, Buy, Buy!

Listen, I'm not going to sugarcoat it. cps technologies is a stock with potential, but it's not without its risks. The company is in the midst of a significant transition, and there are no guarantees. But if you're looking for a company with a strong management team, a diversified product portfolio, and a clear path to profitability, then CPS Technologies is a stock you need to own. So, do yourself a favor and get in on the ground floor. This is a turnaround story in the making, and you don't want to miss out!

BOO-YAH! CPS Technologies is a winner, and you need to own this stock!
Comments

Post
ethereal3xp
03/12
$CPSH might be a diamond in the rough. Growth potential is there, but keep an eye on those losses.
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superbilliam
03/12
Betting on CPS, gotta watch those losses.
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Puzzleheadbrisket
03/12
@superbilliam Holding long-term or just short swing? Curious about your target price for CPS.
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TheMushroomGuy
03/12
What's up with these wild revenue swings?
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Puzzleheaded-Mood544
03/12
Defense contracts and commercial sales of shielding material—CPS is playing all the right cards.
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RhinoInsight
03/12
Diversification is key here. They're not just sitting on their armor contract. Smart moves with those SBIR contracts.
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SussyAltUser
03/12
With a $13.3M power module contract, their pipeline isn't dry. Optimistic about their future prospects.
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GazBB
03/13
@SussyAltUser What do you think about their radiation shielding move?
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sniperadjust
03/12
Operating losses stung, but startup expenses are temporary. Long-term, they could pivot nicely.
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ContentSort1597
03/12
Anyone else think the radiation shielding could spin off into civilian tech? Potential multi-market play.
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Miguel_Legacy
03/12
$CPSH has a lot of moving parts. Growth potential is there, but keep an eye on those losses. Not a straightforward play.
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makeammends
03/12
Diversification is key here. They're not just sitting on their hands. Smart moves with the SBIRs.
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PlatHobbits7
03/12
@makeammends True, diversification's key. SBIRs are smart.
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Frozen_turtle__
03/12
Radiation shielding is a game-changer. Commercial sales could open new revenue streams. Worth watching closely.
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owter12
03/13
@Frozen_turtle__ Commercial sales? Meh, watch and see.
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aiolyfe
03/12
Looks like CPS is gearing up for a comeback. Those new contracts are a big deal. 🚀
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_Ukey_
03/12
Diversification might save CPS from sinking.
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istockusername
03/12
Innovation in defense and energy sectors could propel them forward. Management team seems committed.
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Aertypro
03/12
I'm holding a small position in $CPSH. Betting on their materials science expertise and future contracts.
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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