Arts-Way Manufacturing soars 25% on strong Q2 earnings

Arts-Way Manufacturing Co. Inc. (Nasdaq:ARTW) is trading up more than 25% today after the Armstrong, Iowa-based farm machinery manufacturer announced a 34.9% increase in second-quarter revenues. For the quarter ended May 31, revenue was $7.7 million compared with $5.7 million for the same quarter a year ago. Net income was $0.89 million, or $0.45 per share, compared with $0.56 million, or $0.28 a share, for a year earlier. The company said the improved earnings were due to better operating margins in spite of challenges in the agricultural sector.

The company also announced today its board of directors had voted to approve a two-for-one stock split of common stock. Each shareholder of record as of July 23 will receive one additional share for every outstanding share held on record date, the company said in a statement.

In today’s trading, Arts-Way is trading at $24.42, up $5.02 from Tuesday’s close. Trading volume soared to more than 92,000 shares, up from the average 7,000.

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