Overview

* Sono-Tek ( SOTK ) reports fiscal Q2 revenue of $5.163, mln missing analysts' expectations

* Net income for fiscal Q2 rises 24% yr/yr to $424,000, or $0.03 per share

* Backlog increased 50% sequentially, driven by medical market orders

Outlook

* Sono-Tek ( SOTK ) updates FY26 guidance, anticipating modest revenue growth

* Company sees growing demand in medical device market as offset to clean energy uncertainties

* Sono-Tek ( SOTK ) remains focused on execution amid evolving clean energy incentives and tariff policies

Result Drivers

* MEDICAL MARKET GROWTH - Sales in the medical market increased 150% y-o-y, driven by balloon coating systems shipments

* BACKLOG INCREASE - Backlog increased 50% sequentially, reflecting new order momentum from the medical market

* GROSS PROFIT DRIVERS - Gross profit increased 3% y-o-y due to favorable product mix and reduced warranty expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Slight $5.16 $5.20

Revenue Miss* mln mln (1

Analyst)

Q2 EPS Beat $0.03 $0.02 (2

Analysts

)

Q2 Net $424,000

Income

Q2 Gross 50%

Margin

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 45.8% above its October 13 closing price of $4.20

* The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 64 three months ago

Press Release:

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(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.)