Sono-Tek reported second quarter 2027 revenue of $5.23 million and diluted EPS of $0.02, both missing analyst expectations. While the company achieved record medical market growth of 209%, overall results were impacted by a 78% decline in alternative energy sales due to shifting U.S. energy policies. Gross margin expanded to 53% during the quarter, and management reiterated its full-year guidance for flat to modest revenue growth.
Key Highlights
- Medical market revenue surged 209% to $3.11 million, led by shipments of balloon and specialty stent-coating systems.
- Alternative energy sales fell 78% to $0.54 million, reflecting significant shifts in U.S. government spending within the clean energy sector.
- Gross margin expanded to 53% from 50% in the prior-year period, primarily driven by a favorable product and geographic mix.
- Subsequent to the quarter end, the company received three orders totaling $7.19 million, which are expected to ship in fiscal 2028.