Elmet Group (NASDAQ:ELMT) Issues Earnings Results

Elmet Group (NASDAQ:ELMT) released its quarterly earnings data on Thursday. The company reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.20) by $0.38, FiscalAI reports. The company had revenue of $66.40 million for the quarter. The company’s revenue was up 35.2% on a year-over-year basis.

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 Price Performance

Shares of NASDAQ ELMT traded up $1.05 during mid-day trading on Friday, hitting $18.20. 233,331 shares of the company’s stock traded hands, compared to its average volume of 596,377. The business has a 50-day moving average of $16.77. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.75 and a quick ratio of 0.66. The company has a market capitalization of $545.79 million and a P/E ratio of 79.03. Elmet Group has a 1 year low of $12.48 and a 1 year high of $22.51.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ELMT. Canaccord Genuity Group began coverage on shares of Elmet Group in a report on Monday, May 18th. They issued a “buy” rating and a $20.00 price target on the stock. Cantor Fitzgerald initiated coverage on shares of Elmet Group in a report on Monday, May 18th. They set an “overweight” rating and a $20.00 price objective for the company. Needham & Company LLC assumed coverage on Elmet Group in a research report on Monday, May 18th. They set a “buy” rating and a $21.00 price objective for the company. Roth Capital initiated coverage on Elmet Group in a research report on Monday, May 18th. They issued a “buy” rating and a $21.00 target price on the stock. Finally, Wall Street Zen raised Elmet Group to a “hold” rating in a research note on Saturday, May 2nd. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Elmet Group has an average rating of “Moderate Buy” and an average target price of $20.50.

Elmet Group Company Profile

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.