Sono-Tek Medical Sales Surge 289%, First-Half Operating Income Jumps 41%
SOTK sits 91% above its 52-week low of $3.4.
Summary
Sono-Tek reported Q2 FY27 net sales of $5.23M, up 1% year-over-year, with gross margin expanding to 53% from 50%. Net income fell 14% to $366K ($0.02/sh) on higher operating expenses, missing estimates as higher costs outweighed margin gains. First-half results were stronger: revenue up 6% to $10.89M, gross margin 55%, operating income up 41% to $1.28M, and net income up 22% to $1.11M. The standout is medical market sales, up 209% in Q2 and 289% for the half, driven by balloon coating and stent-coating systems. Backlog rose 23% sequentially to $9.51M, and the company reiterated flat-to-modest FY27 revenue growth guidance, citing timing of large orders. This follows the record $7.19M clean energy order announced September 30, which boosts FY28 visibility. The medical ramp and margin expansion are the key positives, but Q2 net income decline and clean energy weakness (down 78% in Q2) temper the story.
At the time of this announcement, SOTK was trading at $6.50 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $111.9M. The 52-week trading range was $3.40 to $7.48. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.