Force Protection, Inc.’s (FRPT) share price has more than doubled in just the last 2 months after beginning a steady trend higher in mid November. The current-year estimate is up to 58 cents per share, more than a 400% earnings grwoth projection.

Company Description

Force Protection, Inc. with its subsidiaries, engages in the manufacture of ballistic and blast protected vehicles for military applications. The company’s primary customer is the United States military and has a market cap of $454 million.

Third-Quarter Results

Force Protection stepped up to the plate and delivered impressive third-quarter results on Nov 11 that were ahead of analyst estimates. Sales were up 66% from last year to $343.3 million.

Net income surged, jumping to $19.9 million from a loss of $800,000. This produced earnings of 29 cents per share against the expected 11 cents.

Margin Expansion

Force Protection helped its cause during by matching higher sales volumes with wider margins, with its gross margin increasing to 18.6% from 10.9% last year. The up tick was driven by higher volume in the company’s spare parts and service divisions, which carry higher margins.

Analyst Estimates

On a shorter term basis, the analyst community is bullish on this company, with the current-year estimates up 12 cents in the last 90 days to 58 cents per share. Based on this earnings projection, this stock has a forward P/E multiple of just over 11X, in line with the overall market.

The Chart

Shares of FRPT have been on a very smooth rally since breaking above the $3 mark in late November. Since then, this stock has topped-off above $7, an impressive short-term gain of more than 100%. Take a look at the chart below.

Content Courtesy: Zacks Investment Research

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