Standex International Q3 sales rise driven by new product launches

Overview

• US multi-industry manufacturer's fiscal Q3 sales rose 8.1%, but slightly missed analyst expectations

• Adjusted EPS for fiscal Q3 missed analyst expectations

• Company completed Federal Industries divestiture, supporting portfolio simplification and reduced leverage

Outlook

• Company expects Q4 revenue to be slightly to moderately higher year-on-year

• Company expects Q4 adjusted operating margin to be slightly lower year-on-year

• Company now expects FY26 revenue to grow by about $100 mln after Federal Industries divestiture

Result Drivers

• NEW PRODUCTS AND FAST GROWTH MARKETS - Co said Q3 sales growth was driven by new product launches and increased sales into fast growth markets, which contributed over 30% of total sales

• SEGMENT PERFORMANCE - Electronics segment grew organically due to demand in fast growth markets and new products; Aerospace & Defense revenue rose on organic growth and McStarlite acquisition, with strength in space projects

• SCIENTIFIC AND HYDRAULICS WEAKNESS - Scientific segment revenue declined due to lower demand from academic and research institutions impacted by NIH funding cuts; Hydraulics saw organic decline from general market weakness

Company press release: ID:nPn1GPF7xa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "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 Standex International Corp is $290.50, about 14.8% above its April 29 closing price of $253.06

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 23 three months ago

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