Canadian firm EnWave's Q4 revenue rises on machine sales

Overview

• Vacuum dehydration firm's Q4 revenue rose 71% yr/yr

• Adjusted EBITDA for Q4 rose significantly, driven by machine sales

• Company signed multiple equipment purchase agreements in Q4

Result Drivers

• MACHINE SALES - EnWave's Q4 revenue growth was driven by the commissioning of one large-scale and six small-scale machines, and the sale of a refurbished 120kW machine

• ADJUSTED EBITDA GROWTH - Increase in Q4 adjusted EBITDA was driven by machine sales and production sales mix

• ROYALTY REVENUE SHIFT - Base royalties increased due to expanded product sales and REV machine capacity utilization, while total royalty revenue decreased due to a partner's strategic shift

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

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

• Wall Street's median 12-month price target for Enwave Corp is C$0.80, about 90.5% above its December 12 closing price of C$0.42

Press Release: ID:nGNX1wmlxS

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