Quick Win by the Algorithm: Solid Earnings For Raven In First Quarter Fiscal

Quick Win by the Algorithm

On May 22nd, 2016, the I Know First algorithm issued a bullish forecast for Raven Industries, Inc. (RAVN). RAVN had a signal of 961.37 and a predictability of 0.74. As a result, in accordance with the forecast, the company’s stock increased by 88.05% within 1 year, showing a quick win by the algorithm.

Raven was founded in Sioux Falls, SD, in 1956 as a manufacturer of high-altitude research balloons for the American space program to help solve a great challenge in space exploration. Raven has three business segments. Applied Technology, providing agriculture products designed to reduce operating costs and improve yields. Aerostar, dedicated to protecting and connecting the world through aerospace platforms, surveillance technology and specialty sewn products. Engineered Films, dedicated to providing solutions that protect Earth’s resources and preserve asset value. 


First-quarter fiscal 2018 results for RAVN are in, and the bottom-line is looking healthy with strong growth across all segments. An impressive net-income of $12.3 million, up 123.8% from $5.5 million in the corresponding quarter last year. Earning per share are also up 126.7% from $0.15 to $0.34 year-on-year.

Taking a look at performance across Raven’s three segments:

Applied Technology –  In conclusion, this segment saw sales grow 28.7% to $40.5 million, with operating income up 54.8% to $13.5 million. The company released new products and developed stronger relationships with Original Equipment Manufacturers (OEM’s).

Engineered Films – Most noteworthy, the segment saw sales grow 49.7% to $43.6 million. The company experienced higher sales in the Geomembrane Market, a synthetic membrane liner use to control fluid or gas migration in a human-made project. Additionally, there was strong sales in the Industrial and Construction markets.

Aerostar – In conclusion, Raven’s smallest segment, saw sales grow 21.7% to 9.6 million. So, this growth can be attributed to starting of a new stratospheric balloon contracts and a rise in sales to Google for Project Loon. Furthermore, cost reductions in the segment also contributed to the bottom line for Raven.

Given these factors, we can see why RAVN’s stock price increased.

This bullish forecast on RAVN was sent to current I Know First subscribers on May 22, 2016. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.