Wajax Corp. Surges After Q4 Earnings
Wajax Corp. (TSX:WJX) was up 7% at the bottom of the noon hour on March 6. Wajax is a Mississauga-based distributor of industrial components. Shares have still dipped 1.5% in 2018 thus far. The company released its 2017 fourth quarter and full-year results after trading closed on March 5.
In the fourth quarter revenue climbed to $376.6 million compared to $313.7 million in the prior year. Equipment sales saw a big boost and increased to $156.5 million from $111.5 million. This was largely due to higher construction and material handling sales in all operating regions. Adjusted net earnings in Q4 rose to $10.9 million from $8.9 million in the prior year.
For the full-year total revenues were reported at $1.31 billion compared to $1.22 billion in 2016. Equipment sales, industrial parts, and product support all reported higher revenues year over year. Net earnings climbed to $30.9 million compared to $11 million in 2016 and basic earnings per share rose to $1.58 from $0.55.
Wajax leadership has projected continued organic growth in net earnings for 2018. The company plans to increase its market share in its most highly competitive segments which could put pressure on gross margins. Business conditions in western Canada are projected to be favourable in 2018 but overall Wajax does not expect the same year-over-year growth that it saw from 2016 to 2017.
Wajax also offers a quarterly dividend of $0.25 per share representing a 4.1% dividend yield.