Overview

• Ultrasonic coating systems maker's fiscal Q1 revenue rose 10% on strong medical sector demand

• Gross margin expanded to 57% from 52% due to favorable product mix and higher-value shipments

Outlook

• Sono-Tek projects continued revenue growth in 1H 2027, led by medical sector demand

• Company expects fiscal 2027 revenue to be flat to modestly higher than fiscal 2026

• Quarterly revenue may fluctuate due to shipment timing of higher-value production systems

Result Drivers

• MEDICAL SECTOR DEMAND - Strong demand for specialty stent coating systems and Drug-Eluting Balloon platforms in the U.S., Europe, and Asia drove revenue growth

• PRODUCT MIX - Higher concentration of medical systems, shipments of higher-value production platforms, and more U.S.-based sales with lower distributor commissions contributed to gross margin expansion

• MULTI-AXIS SYSTEMS GROWTH - Multi-axis coating systems saw strong demand across multiple end markets, supporting overall sales

Company press release: ID:nGNXGjR0S

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$5.66 mln	$5.50 mln (1 Analyst)
Q1 EPS	Beat	$0.05	$0.04 (2 Analysts)
Q1 Gross Margin		57.00%

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"

• Wall Street's median 12-month price target for Sono-Tek Corp is $7.50, about 45.6% above its July 7 closing price of $5.15

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 32 three months ago

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