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P&F Industries, Inc. (PFIN) stock soared in the pre-market trading session: here’s why

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P&F Industries, Inc (PFIN) stock recently traded at $6.60 which is a 9.46% upward movement. The stock previously closed at $6.03. PFIN stock also soared in the pre-market trading session by 16.36% at the time of writing.

The recent positive pattern in the PFIN stock movement comes along with no specific news or press release today. P&F Industries (PFIN) did, however, released its report for the year ended 2020, the performance of which had made investors lose confidence in the PFIN stock.

P&F Industries’ corporate background

P&F Industries (PFIN) is a tool & accessories manufacturer that specifically creates air-powered tools and related accessories. P&F also imports these tools and sells them principally to the retail, industrial, automotive, and aerospace market. Two wholly-owned subsidiaries of PFIN are Continental Tool Group Inc. and Countrywide Hardware Inc. which are mainly responsible for the manufacturing and importing. However, the products produced are either sold under their own trademark or under the private labels of major manufacturers. These manufacturers also include Florida Pneumatic and Hy-Tech Machine Inc.

The pandemic caused underperformance in several sectors of P&F

The financial result of 2020 showed the underperformance of PFIN stock and operations.

  • P&F reported net revenue for 2020 is $49,136,000 compared to $58,674,000 net revenue of 2019.
  • The Company also reported a loss in before-income taxes of $6,855,000 for 2020 which increased from 2019’s $6,708,000.
  • The before-income tax 2020 loss also included an impairment charge of $1,612,000.
  • P&F reported net-income of $4,954,000 for 2020 compared to $4,911,000 in 2019.

The financial result also show that P&F Industries’ (PFIN) aerospace industry performed really poorly. This was mainly due to the limitation in the production of the Boeing 737 MAX made by the Boeing Company. In addition to this, the pandemic most negatively impacted P&F Industries’ revenue and operational performance. Due to the pandemic, another problem that declined the revenues of P&F’s aerospace sector is the overall reduction in the production of commercial as well as military aircrafts.

The pandemic also declined the sales ofP&F stock in Europe which had relatively better operational performance but due to the pandemic, the European countries had all some form of lockdown imposed on them.

This problem due to pandemic will continue to persist if the vaccine administration in these countries is not accelerated.

Even the world-over Oil and Gas exploration and production activities hit a downturn trend along with stagnation in its growth. This sector also resulted in lower revenue generation as well as overall weak fundamentals for the P&F’s manufacturing and production capabilities.

The CEO is positive that P&F industry will recover in current year 2021

The CEO of P&F Industries Inc. (PFIN), Richard Horowitz has resorted to a positive expectation to regain their original operational potential and better PFIN stock performance as the COVID-19 vaccinations have started distribution. The lockdowns have also been eased in many US states and cities.

Mr. Horowitz added that Boeing’s reopening of the production of Boeing 737 MAX aircraft along with increased production will allow the aerospace sector to increase its performance and hopefully expand. But this normal-operations level is predicted by him to be only in the second half of 2021. Furthermore, the first two months of the industry have been going strong thanks to increase in overall customer order activity.

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