Ceradyne (CRDN) opened sharply higher Friday morning when it announced the following good news.
Ceradyne said Firday it received a $133 million delivery order for Enhanced Side Ballistic Inserts (ESBI) from the U.S. Army, Aberdeen Proving Ground, Maryland.
The thing is, the order was part of an already announced contract. For sales to the military, companies generally get an umbrella contract for a large quantity over multiple years. However, each year’s portion is subject to Congressional approval. So while it would have been bad news if the company did not receive the follow-on, receiving it was more or less expected.
CRDN 1-yr chart: