Coda Octopus Q1 revenue rises 28.8% on marine technology business strength

Overview

• Subsea imaging technology firm's fiscal Q1 revenue rose 28.8% yr/yr to $6.7 mln

• Net income for fiscal Q1 rose 1.9% yr/yr, diluted EPS unchanged at $0.08

• Revenue growth driven by Marine Technology sales in Asia and higher equipment rental demand in Europe

Outlook

• Company expects fiscal 2026 DAVD sales to be backended due to delayed defense appropriations

• Company sees strong opportunities in expanding defense and underwater robotics markets

• Coda Octopus continues to focus on business development for DUS, targeting European Navy sector

Result Drivers

• ECHOSCOPE SALES IN ASIA - Marine Technology Business revenue rose, driven by a 63.4% increase in Echoscope sales in Asia

• EQUIPMENT RENTALS IN EUROPE - Equipment rental revenue increased 232.8% from European Rental Hub

• DAVD SALES DELAY - DAVD sales declined due to delays in U.S. Defense appropriations and pending Navy assessment

Company press release: ID:nGNXZfTWH

Key Details

Analyst Coverage

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

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Coda Octopus Group Inc is $14.00, about 2.8% above its March 16 closing price of $13.62

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 19 three months ago

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