Sono-Tek Q2 profit misses estimates as higher costs outweigh margin gains

Sono-Tek

14/10/2026 12:13

Overview
US ultrasonic coating systems maker's Q2 revenue rose 1% yr/yr, gross margin expanded to 53%
EPS for Q2 declined to $0.02 from $0.03 in prior-year period
Company reiterates flat to modest revenue growth guidance for FY 27, citing timing of large orders

Outlook
Sono-Tek reiterates expectation of flat to modest revenue growth for FY 27
Company says recent large orders significantly increase revenue visibility for FY 28
Sono-Tek sees quarter-to-quarter revenue variability due to timing of large orders

Result Drivers
MEDICAL SALES SURGE - Co said medical market sales rose 209% in Q2, led by shipments of balloon coating and specialty stent-coating systems
PRODUCT AND GEOGRAPHIC MIX - Co attributed expanded Q2 gross margin to an unusually favorable product and geographic mix
HIGHER OPERATING EXPENSES - Co said increased operating expenses partially offset gross profit gains in Q2

Company press release: ID:nGNX5bqY4J

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$5.23 mln
$5.54 mln (2 Analysts)
Q2 EPS
Miss
$0.02
$0.04 (2 Analysts)
Q2 Net Income
 
$366,000
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Sono-Tek Corp is $8.50, about 19.4% above its October 13 closing price of $7.12
The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 55 three months ago

Reuters Recommended Reads
Oct 12 - Bristol Myers' lung disease drug succeeds at lower dose in late-stage trial
Oct 12 - Bristol Myers radiopharma cancer drug slows rare tumor progression in study

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.)