Elmet Group (NASDAQ:ELMT – Get Free Report) posted its earnings results on Thursday. The company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.20) by $0.38, FiscalAI reports. The firm had revenue of $66.40 million during the quarter. The company’s revenue for the quarter was up 35.2% compared to the same quarter last year.
Here are the key takeaways from Elmet Group’s conference call:
- Strong Q2 financial performance: Revenue rose 35.2% year over year to $66.4 million, gross margin expanded to 25.0% from 20.7%, and adjusted EBITDA increased 57.2% to $8.9 million, supported by CMC productivity gains and favorable tungsten pricing.
- Record backlog and defense momentum: Firm backlog reached $131.5 million, up 55% year over year, with aerospace, defense and government backlog increasing 100.5% on programs including Precision Strike Missile, Standard Missile and Patriot.
- Elmet secured $4.3 million in strategic funding to expand domestic molybdenum-based manufacturing and refractory-metal capacity for defense interceptor programs, while management expects additional opportunities from rising defense spending and U.S. reshoring.
- The company increased its ownership stake in tungsten producer EQ Resources and sources more than 95% of tungsten and molybdenum outside China, positioning it to mitigate export-control disruptions; however, raw-material prices and tariffs remain volatile.
- GAAP net loss was $4.5 million, or $0.16 per share, versus net income of $1.2 million a year earlier, largely due to $14.2 million of stock-based compensation and IPO-related expenses. EMP margins also weakened because of factory execution issues and faster-than-expected material-cost increases, with improvement expected to take time.
Elmet Group Stock Performance
Shares of ELMT traded up $1.67 during trading hours on Friday, reaching $18.82. 432,382 shares of the company traded hands, compared to its average volume of 315,690. The firm has a fifty day moving average of $16.80. The firm has a market cap of $564.22 million and a PE ratio of 81.83. The company has a current ratio of 1.75, a quick ratio of 0.66 and a debt-to-equity ratio of 0.68. Elmet Group has a 1-year low of $12.48 and a 1-year high of $22.51.
Hedge Funds Weigh In On Elmet Group
Wall Street Analyst Weigh In
A number of equities research analysts have issued reports on ELMT shares. Wall Street Zen upgraded shares of Elmet Group to a “hold” rating in a report on Saturday, May 2nd. Weiss Ratings began coverage on Elmet Group in a research report on Monday, July 20th. They set a “sell (e)” rating for the company. Needham & Company LLC assumed coverage on Elmet Group in a research note on Monday, May 18th. They set a “buy” rating and a $21.00 target price for the company. Zacks Research raised Elmet Group to a “hold” rating in a report on Tuesday, May 19th. Finally, Canaccord Genuity Group initiated coverage on Elmet Group in a research report on Monday, May 18th. They issued a “buy” rating and a $20.00 price target on the stock. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $20.50.
About Elmet Group
Elmet provides precision-engineered components and advanced high-energy systems for growth markets. Our customers in these markets require advanced technology involving critical and strategic materials, such as tungsten, molybdenum and niobium (such materials, the “Critical Materials”) and high-level radio frequency (“RF”) engineering, including plasma generation, radar, and other high-energy systems (together, “High-Power Microwave”). Our products and solutions are integral to the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries.
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