Overview

• Ultrasonic coating systems maker's fiscal Q4 revenue rose 10% yr/yr to $5.6 mln

• Fiscal Q4 net income increased 70% yr/yr, reflecting margin expansion and higher profitability

• Company expects continued revenue growth in 1H FY 2027, led by medical sector demand

Outlook

• Sono-Tek anticipates continued revenue growth and profitability in 1H FY 2027

• Company projects FY 2027 revenue to be flat to modestly higher versus FY 2026

• Company sees uncertainty in clean energy sectors and timing of high-ASP orders

Result Drivers

• MARGIN EXPANSION - Gross margin rose due to a favorable product mix with more high-ASP systems and increased U.S. sales, per CEO Steve Harshbarger

• MEDICAL SECTOR GROWTH - Strong demand for balloon catheter and stent coating systems drove medical market sales higher

• CLEAN ENERGY DECLINE - Lower electrolysis-related orders due to government policy changes weighed on alternative energy sales

Company press release: ID:nGNX5pQnCh

Key Details

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 $6.75, about 27.1% above its May 27 closing price of $5.31

• The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 33 three months ago

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