Corrected: Drone maker Red Cat's Q2 revenue jumps, aided by production capacity expansion
CORRECTED-Drone maker Red Cat's Q2 revenue jumps, aided by production capacity expansion Corrects period to Q2 from Q1 in Key Details table
Overview
U.S. drone and robotics provider's Q2 revenue rose 527% yr/yr to $20.2 mln
Gross margin improved 39 percentage points yr/yr to 16.1%
Company completed Quaze Technologies acquisition and reaffirmed full-year revenue target
Outlook
Red Cat reaffirms full-year revenue target of $150 mln to $180 mln
Company says expanding manufacturing capacity and product portfolio support future growth
Red Cat expects to capitalize on increased adoption of unmanned and autonomous systems
Result Drivers
SCALED DELIVERIES AND PRODUCTION - Co said revenue growth was driven by scaling deliveries and expanding production capacity
PRODUCTION EFFICIENCIES AND DIVERSIFICATION - Co attributed gross margin improvement to scale, production efficiencies and a more diversified product portfolio
TECHNOLOGY ACQUISITION - Acquisition of Quaze Technologies added wireless power transfer capabilities to support longer-duration autonomous operations
Company press release: ID:nGNXbxY2KW
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $20.2 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Red Cat Holdings Inc is $20.00, about 130.9% above its August 5 closing price of $8.66
Reuters Recommended Reads
Aug 6 - Unusual Machines Q2 revenue surges on capacity expansion
Aug 4 - Battery maker Amprius Q2 revenue more than doubles, beats estimates on drone, e-mobility demand
Aug 5 - China targets US firms and drone exports after FCC, Xinjiang actions
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.)