Canada's EnWave Q3 revenue rises on sale of machines held in inventory, higher royalties
Canada's EnWave Q3 revenue rises on sale of machines held in inventory, higher royalties
Overview
Canada vacuum dehydration tech firm's fiscal Q3 revenue rose 21% yr/yr on machine sale, higher royalties
Adjusted EBITDA loss for Q3 narrowed sharply from prior year, aided by equipment sale, lower SG&A
Company signed multiple new equipment and licensing agreements during the quarter
Outlook
Company did not provide specific guidance for the current or upcoming periods
Result Drivers
MACHINE SALE - Q3 revenue increase was mainly driven by sale of a large-scale machine previously held in inventory
HIGHER ROYALTIES - Royalties rose due to higher product sales and partner production for the quarter
LOWER FABRICATION COSTS - Gross margin improved as fewer large-scale machines were on contract, reducing fabrication costs
Company press release: ID:nGNX2qV6X4
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| C$3.31 mln | C$2.80 mln (1 Analyst) |
Q3 Net Loss |
| C$465,000 |
|
Q3 Adjusted EBITDA |
| -C$93,000 | C$200,000 (1 Analyst) |
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$0.75, about 219.1% above its August 20 closing price of C$0.24
The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 84 three months ago
Reuters Recommended Reads
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Aug 20 - Canada's Perimeter Medical Imaging AI Q2 loss narrows on lower expenses
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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