UK's Xaar H1 revenue rises 9.2%, returns to profit
UK's Xaar H1 revenue rises 9.2%, returns to profit
Overview
UK inkjet printhead maker's H1 revenue up 9.2% yr/yr to £29.7 mln
Adjusted pretax profit turned positive at £0.2 mln vs loss a year ago
Gross margin improved to 38.7% from 36.5% on better product mix and efficiency
Outlook
Company says full-year outlook remains unchanged
Xaar sees strong pre-launch demand for Flashforge CJ270 ahead of commercial launch
Company expects commissioning of Dongguan facility to enhance supply chain resilience
Result Drivers
NEW OEM BUSINESS - Printhead revenue growth was driven by new OEM customers and progress in ceramics glaze applications
APPLICATION EXPANSION - Strong growth in 3D printing and advanced manufacturing applications as OEMs shift toward digital processes
SUBSIDIARY CONTRIBUTIONS - Megnajet and Engineered Printing Solutions delivered double-digit revenue growth, supported by increased uptake of modular platforms and improved project execution
Company press release: ID:nRSD0811Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 29.70 mln |
|
H1 Adjusted EBITDA |
| GBP 1.70 mln |
|
H1 Gross Margin |
| 38.70% |
|
H1 Adjusted Pretax Profit |
| GBP 174,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for Xaar PLC is GBp145.00, about 20.3% above its August 3 closing price of GBp120.50
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 39 three months ago
Reuters Recommended Reads
Aug 3 - UK engineering group Senior's H1 adjusted pretax profit rises 38%
Aug 3 - UK's Microlise H1 revenue falls 10% as OEM sales weaken
Aug 3 - 3D Systems Q2 adjusted EBITDA loss narrows, beats estimates
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.)