Ultrasonic coating systems maker Sono-Tek misses Q2 revenue estimates, forecasts modest FY growth

Sono-Tek

14/10/2025 12:23

Overview

Sono-Tek reports fiscal Q2 revenue of $5.163, mln missing analysts' expectations

Net income for fiscal Q2 rises 24% yr/yr to $424,000, or $0.03 per share

Backlog increased 50% sequentially, driven by medical market orders

Outlook

Sono-Tek updates FY26 guidance, anticipating modest revenue growth

Company sees growing demand in medical device market as offset to clean energy uncertainties

Sono-Tek remains focused on execution amid evolving clean energy incentives and tariff policies

Result Drivers

MEDICAL MARKET GROWTH - Sales in the medical market increased 150% y-o-y, driven by balloon coating systems shipments

BACKLOG INCREASE - Backlog increased 50% sequentially, reflecting new order momentum from the medical market

GROSS PROFIT DRIVERS - Gross profit increased 3% y-o-y due to favorable product mix and reduced warranty expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$5.16 mln
$5.20 mln (1 Analyst)
Q2 EPS
Beat
$0.03
$0.02 (2 Analysts)
Q2 Net Income
$424,000
Q2 Gross Margin
50%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $7.75, about 45.8% above its October 13 closing price of $4.20

The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 64 three months ago

Press Release: ID:nGNXbGj6sD

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(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.)