Sono-Tek misses Q3 revenue expectations, reiterates FY 2026 guidance

Overview

• Ultrasonic coating systems maker's Q3 revenue fell 4% yr/yr, missing analyst expectations

• Company's gross margin expanded to 50% in qtr, reflecting improved operational efficiency

• Company's backlog reached record $12.3 mln, indicating strong customer order momentum

Outlook

• Sono-Tek reiterates FY 2026 guidance, anticipating modest revenue growth

• Company expects growing demand in medical device market to offset clean energy declines

• Sono-Tek sees evolving tariff policies impacting future results

Result Drivers

• MEDICAL MARKET - Continued strength in the medical market drove demand for ultrasonic coating platforms, supporting revenue above $5 million for the seventh consecutive quarter

• HIGH-ASP SYSTEMS - Focus on high-ASP production systems contributed to gross margin expansion to 50%

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 85.4% above its January 12 closing price of $4.18

Press Release: ID:nGNXbYZkvt

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