Overview

* Sono-Tek ( SOTK ) fiscal Q1 rev misses analyst expectations, per LSEG data

* Gross margins expand to 52% on high ASP order completion

* Operating income rises 103% yr/yr, driven by lower expenses

Outlook

* Sono-Tek ( SOTK ) expects continued revenue growth in first half FY 2026

* Company anticipates flat revenue growth for full FY 2026

* Sono-Tek ( SOTK ) sees uncertainty from clean energy incentives and tariff policies

* Company remains focused on high ASP orders and long-term growth

Result Drivers

* HIGH ASP ORDERS - Revenue driven by a $2.95 million order in the advanced solar market, boosting gross margins to 52%

* COST MANAGEMENT - Operating income increased 103% year-over-year due to higher gross profit and lower operating expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Miss $5.13 $5.24

Revenue mln mln (2

Analysts

)

Q1 Gross 52.0%

Margin

Q1 Gross $2.70

Profit mln

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 ( SOTK ) is $7.75, about 51.5% above its July 9 closing price of $3.76

* The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release:

(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.)