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This is just a short follow up on my previous article on Smith-Midland Corp. (OTCQB:SMID).

SMID released earnings last week and knocked it out of the park with EPS of .15/share against .04 last year. Cash and receivables have now grown to 1.62 a share. Backlog continues to be quite healthy at 13 million dollars.

If you remove one time expenses in the December quarter, they have now had consecutive EPS numbers of .12,. 20, .15. The stock has responded modestly so far, settling at $2.11/share Friday.

The forward outlook is a bit more puzzling as the company notes their results will be "less positive" while also citing that they will benefit from the stimulus package.

Reading the tea leaves here, I am interpreting this to mean we are going to see EPS fall sub .10 possibly to .06 or .07 in the near term. Still, it's hard to see the stock as anything but cheap given their earnings trends plus cash/receivables numbers and book value that is currently 1.79/share.

Disclosure: Author holds a long position in SMID

Source: Smith-Midland Reports Concrete Earnings