L S Starrett Stock Rallies After Strong FY21 Results

L S Starrett Co SCX reported an FY21 sales increase of 9% year-over-year to $219.64 million. Currency-neutral sales improved 15% from FY20 and rose 7% from FY19.
Tru-Stone subsidiary experienced strong sales growth due to increased demand for equipment for the high-end chipmaking industry.
EPS increased by 170% Y/Y to $2.11.
The gross margin expanded by 250 bps to 33.4%.
SG&A expenses as a percentage of net sales were 25.6%, compared to 29.5% a year ago.
The company reported an operating income of $16.57 million, compared to a loss of $(5.3) million a year ago. The operating margin stood at 7.5% for the fiscal.
Adjusted operating margin expanded by 640 bps to 7.8%.
The company reduced debt by 29% from the prior year and the Pension and post-retirement benefit liability by 44%.
Price Action: SCX shares closed higher by 17.22% at $8.85 on Thursday.