Shares of auto parts provider Sypris Solutions (NASDAQ: SYPR) have been up surging in the premarket session today. After a gain of 6.23% in the previous session, the SYPR stock is up more than 26% before the ring of the bell today. The rise follows financial results Sypris Solutions is set to release on Thursday. Most investors think the Sypris stock may gain value following the release of Q4 results, and that has been raising investor sentiment.
Why the investors are excited?
Among the diversified products, Sypris Solutions provides are truck parts, pipeline components, and aerospace and defense electronics. Company manufactures a variety of products, frequently for multi-year contracts.
The investors have been excited about SYPR stock due to the recent development by the company getting a significant contract from the U.S. DoD contractor which could result in an impressive quarterly report later this week.
What was the development?
A subsidiary of Sypris Solutions named Sypris Electronics, LLC declared late last month that it had won a follow-on award from a prime contractor of U.S. Department of Defense. Sypris Electronics is a trusted provider of electronic solutions, meeting the needs of customers who require complex, mission-critical electronic and electromechanical devices and integrated systems. Here is a breakdown of some of the contract’s highlights:
- The award was for the production and testing of precision-guided anti-ship missiles that are designed to be mission-critical, long-range, and guided at precise distances.
- The commencement of production will take place in 2021 but terms of the agreement have not been made public.
- Essentially, the Defense Department uses the program to provide its warfighters with a source of armaments for the next decade.
- Designed to detect and hit specific targets within groups of ships, the missile system employs precision routing and guidance that is available no matter what time of day.
- According to press releases, the program offers range, technology and survivability that are unmatched by any other system currently available.
Sypris Solutions (SYPR) stock price is on the rise ahead of the release of quarterly results, which suggests that investors are sure to continue to gain more excitement after release of SYPR’s latest results. But Sypris Solutions’ performance in the upcoming reported quarter will surely be the deciding factor.