Shares of Sono-Tek Corporation (NASDAQ: SOTK) jumped 25% on Wednesday morning as investors welcomed strong results for its fiscal second quarter. The $87 million firm now has a PE ratio of 39.73.
Sono-Tek said its gross profit climbed by 28% in Q2 as net sales added more than half a million to come in at $4.07 million. Gross margin stood at 51% in the recent quarter that represents a 440-basis points expansion.
The New York-based company attributed its strong quarterly results partially to a higher demand for diagnostic coatings on electronic devices for COVID-19 test kits.
Income and backlog
Other notable figures included a 92% growth in net income and a 123% increase in operating income. At $6.3 million, backlog was up 45% compared to May 31st. The earnings report was Sono-Tek’s first since it uplisted to the Nasdaq Capital Market in late August.
Sono-Tek expressed confidence in the earnings press release that it’ll sustain momentum and note a double-digit growth in sales over the next two quarters. The global manufacturer of ultrasonic coating systems expects fiscal 2022 to be its best year in terms of annual sales in corporate history.
CEO Coccios’ remarks
Sono-Tek generated roughly 62% of the quarterly sales from outside of the U.S. and Canada. According to CEO Christopher Coccio:
We expect continued international growth as countries roll back COVID restrictions and bring manufacturing capacity back online. We’ve already begun to see increased activity in our global network of process development labs. We effectively contained costs in Q2, and the product mix was favourable.
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