The NASDAQ-listed company posting the biggest percentage gain on Monday morning is Appliance Recycling Centers of America, Inc. (NASDAQ:ARCI), with the stock exploding upward on better than expected results from the second quarter. Shares of ARCI ended 2016 at $1.12, but have been on the slide ever since hitting a high of $1.40 on January 24, including a low of 51.5 cents last Wednesday, as investors looked for a reason to buy into the stock.
Swinging to a net profit was apparently a good enough reason. Last week, ARCA filed an NT 10-Q filing with the SEC stating that they were going to be late with their quarterly filing. A complete filing isn't available yet on the company's website, but today's release hit the highlights, similar to a preliminary release PR.
The Minneapolis-based provider of appliance-related services said it had net income of "more than $2 million," or 31 cents per share, during the second quarter, versus a net loss of $2.1 million in the year prior quarter. The profits came on a 4.1% increase in revenue to $25.7 million.
Investors will likely cull the headline results for any potential one-time items that had a meaningful influence on the results.
ARCA management said that diligent work to improve the balance sheet and streamline operations are taking effect, including selling their 50% stake in a joint venture called ARCA Advanced Processing LLC last week. The divestment brought $800,000 in cash and release of in excess of $4 million in liabilities, benefits that will be realized during the current quarter.
Wall Street is cheering the news, sending shares up a whopping 109.9% to $1.28 in Monday morning trading. Shares printed as high as $1.41, marking the highest level to date in 2017.
