M-tron Industries Q2 revenue, adjusted EBITDA rise on defense shipments

The one available analyst rating on the shares is hold. The average consensus recommendation for the electronic equipment & parts peer group is buy.

Wall Street's median 12-month price target for M-Tron Industries Inc is $84.00, about 1.9% below its August 11 closing price of $85.62. The stock recently traded at 31 times the next 12-month earnings, versus a P/E of 26 three months ago.

The U.S. aerospace electronics maker said strength in its core markets supports confidence in its business trajectory.

Backlog increased to $84.0 million, reflecting broad demand in aerospace and defense. The company expects recent non-cash stock compensation charges not to recur at comparable levels.

M-tron said revenue growth was primarily driven by strong shipments in defense and aerospace programs, with additional growth in avionics and space products. It attributed backlog growth to broad demand, continued purchasing under large aerospace and defense programs, new program orders, and increased avionics and space industry orders.

Gross margin and net income per share were impacted by a non-recurring stock-based compensation charge related to bonus awards.