Sono-Tek Q2 profit misses estimates as higher costs outweigh margin gains
SOTK•Sono-Tek’s Q2 revenue rose 1% year over year to $5.23 million, below the $5.54 million estimate, while EPS fell to $0.02 from $0.03 and missed the $0.04 estimate. The company reiterated its forecast for flat to modest FY 27 revenue growth.
1. Quarterly results
Sono-Tek reported Q2 net income of $366,000 and gross margin of 53%, which it attributed to an unusually favorable product and geographic mix. Higher operating expenses partly offset the gross profit gains.
2. Outlook and sales
The company reiterated its expectation of flat to modest revenue growth in FY 27, citing the timing of large orders and quarter-to-quarter revenue variability. It said recent large orders significantly increase revenue visibility for FY 28. Medical market sales rose 209% in Q2, led by shipments of balloon-coating and specialty stent-coating systems.
