Industrial equipment maker Sono-Tek misses Q1 revenue estimates

Overview

• Sono-Tek fiscal Q1 rev misses analyst expectations, per LSEG data

• Gross margins expand to 52% on high ASP order completion

• Operating income rises 103% yr/yr, driven by lower expenses

Outlook

• Sono-Tek expects continued revenue growth in first half FY 2026

• Company anticipates flat revenue growth for full FY 2026

• Sono-Tek sees uncertainty from clean energy incentives and tariff policies

• Company remains focused on high ASP orders and long-term growth

Result Drivers

• HIGH ASP ORDERS - Revenue driven by a $2.95 million order in the advanced solar market, boosting gross margins to 52%

• COST MANAGEMENT - Operating income increased 103% year-over-year due to higher gross profit and lower operating expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Sono-Tek Corp is $7.75, about 51.5% above its July 9 closing price of $3.76

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nGNXHcws5