Nephros Q2 profit rises on higher revenue, tariff refund
Nephros Q2 profit rises on higher revenue, tariff refund
Overview
US water filtration provider's Q2 revenue grew 36% yr/yr, beating analyst expectations
Net income rose, aided by one-time tariff refund
Company attributed growth to expansion in core programmatic and service revenue
Outlook
Company says recurring revenue base and commercial opportunities position it for sustainable growth
Nephros says it remains mindful of broader economic environment in its outlook
Result Drivers
CORE PROGRAMMATIC REVENUE - 27% yr/yr growth in recurring programmatic revenue drove results, per CEO Robert Banks
SERVICE REVENUE - Service offerings nearly tripled yr/yr, reflecting higher demand for installation, replacement, and water management support
TARIFF REFUND - One-time $0.6 mln tariff refund boosted gross margin in Q2
Company press release: ID:nGNXbwtv1L
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $6 mln | $4.99 mln (3 Analysts) |
Q2 Gross Margin |
| 67.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Nephros Inc is $6.00, about 67.6% above its August 5 closing price of $3.58
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 38 three months ago
Reuters Recommended Reads
Aug 5 - Mueller Water Q3 sales, profit beat estimates on higher prices, lower costs
Aug 5 - Watts Water Q2 sales beat estimates on higher volumes, favorable price realization
Aug 5 - Regal Rexnord Q2 adjusted EPS beats on tariff refund benefit
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.)