Digirad Corporation (NASDAQ: DRAD) was a top gainer in Friday’s session. The stock gapped up and closed the day with gains of 114.42%. This followed stronger than expected Q4 and 2019 full year results.
In its Q4 results, the company announced that total revenues stood at $25.9 million. This was an increase of 39.4% compared to a similar period in the previous financial year. Gross profits also increased by 112.2% compared to a similar quarter in 2018 to hit $7.9 million. The company also reported a net loss of $0.13 per share. This was lower than the EPS loss of $0.45 that it reported in Q4 of 2018. The company also reported that in Q4, non-GAAP adjusted EBITDA increased by 29.2% to hit $7.7 million.
For the full year, the company reported that non-GAAP adjusted net loss stood at $0.13 per share compared to $1.36 in the 2018 financial year. The company attributed its strong results in both Q4 and the full year to increased revenues, and an increase in intangible amortization costs that stood at $0.8 million and $1.8 million for Q4 and the full year respectively.
Commenting on the results, Digirad’s chairman noted that 2019 was a transition year for the company. He added that in the year, the company acquired ATRM and that it was currently operating and reporting financials as a holding company that has 3 divisions. He further added that the company’s results in Q4 were a reflection of its operations as a HoldCo. He also noted that the strong results were due to additional revenues generated by the company’s Building and Construction division.
From its price action, DRAD is in a breakout. The stock gapped up and opened trading at $6.81. It then traded between a low of $6.20 and a high of $8.84, before closing the day at $6.84. Volumes in the day stood at 12.61 million.
About Digirad Corporation
Digirad Corporation is a healthcare solutions company. It is based in Suwanee, Georgia.