UPDATE: C.K. Cooper Raises PT on Orbit International on 4Q12 Revenues

In a report published Friday, C.K. Cooper reiterated its Buy rating on Orbit International Corp. (NASDAQ: ORBT), and slightly raised its price target from $4.50 to $5.00.

C.K. Cooper noted, “ORBT reported 4Q12 revenues of $7.9MM in line with our estimate of $7.9MM while the EPS of $0.24 (excluding a one-time goodwill impairment charge of $0.8MM) beat our estimate of $0.17. Sequentially, revenue grew slightly but declined ~2.5% on a year-over-year (YoY) basis. The decline in revenues was primarily due to contractual delays relating to uncertainty regarding sequestration. Recall, in our 3Q12 earnings review we had highlighted cost reduction measures initiated by the Company, NOLs and a new credit facility with People's Bank. During 4Q12, the cost reduction measures improved operating margins significantly from an average of -3% during first three quarters of FY12 to 13.6%, thus boosting the EPS.”

Orbit International Corp. closed on Thursday at $3.55.