Sono-Tek (NASDAQ:SOTK) Announces Earnings Results

Sono-Tek (NASDAQ:SOTK) announced its quarterly earnings results on Thursday. The industrial products company reported $0.03 EPS for the quarter, beating analysts’ consensus estimates of $0.02 by $0.01, FiscalAI reports. The business had revenue of $5.61 million during the quarter, compared to analyst estimates of $5.59 million. Sono-Tek had a net margin of 7.72% and a return on equity of 8.54%.

Here are the key takeaways from Sono-Tek’s conference call:

• Sono-Tek said fiscal 2026 was a strong year, with revenue reaching $20.9 million, the company’s second straight year above $20 million and its 16th consecutive year of profitability.
• Profitability improved meaningfully, as gross margin expanded to 51% and operating income rose 81% year over year, helped by a favorable mix of higher-ASP production systems and stronger U.S. sales.
• Medical was the standout end market, growing 54%, while electronics rose 16% and management said demand is increasingly centered on microelectronics and other higher-value applications.
• Clean energy demand weakened, with electrolysis-related business declining amid policy shifts, though the company said solar shipments helped offset some of that pressure earlier in the year.
• Management expects continued growth and profitability in the first half of FY 2027, but full-year revenue is projected to be only flat to modestly higher as order timing remains lumpy and visibility beyond the first half is limited.

Sono-Tek Price Performance

SOTK opened at $4.86 on Friday. The firm’s fifty day moving average price is $4.49 and its two-hundred day moving average price is $4.21. The company has a market capitalization of $76.35 million, a price-to-earnings ratio of 48.60 and a beta of 0.01. Sono-Tek has a 1 year low of $3.23 and a 1 year high of $5.70.

Hedge Funds Weigh In On Sono-Tek

A number of hedge funds and other institutional investors have recently made changes to their positions in SOTK. Dimensional Fund Advisors LP raised its stake in Sono-Tek by 12.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 21,200 shares of the industrial products company’s stock valued at $88,000 after acquiring an additional 2,427 shares during the period. Susquehanna International Group LLP increased its position in shares of Sono-Tek by 28.2% during the third quarter. Susquehanna International Group LLP now owns 15,410 shares of the industrial products company’s stock valued at $69,000 after buying an additional 3,389 shares during the period. HM Payson & Co. bought a new stake in shares of Sono-Tek during the fourth quarter valued at about $89,000. Finally, Renaissance Technologies LLC increased its position in shares of Sono-Tek by 62.6% during the fourth quarter. Renaissance Technologies LLC now owns 62,939 shares of the industrial products company’s stock valued at $260,000 after buying an additional 24,239 shares during the period. 47.89% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

SOTK has been the subject of a number of recent research reports. Weiss Ratings restated a “hold (c)” rating on shares of Sono-Tek in a research note on Friday, March 27th. Truist Financial set a $8.50 price objective on shares of Sono-Tek in a report on Friday, March 13th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $8.50.

Sono-Tek Company Profile

Sono-Tek Corporation is a specialized equipment manufacturer that designs, develops and sells ultrasonic spray coating systems for precision fluid delivery. The company’s core technology uses high-frequency ultrasonic vibrations to generate fine, uniform droplets that can be applied to a broad range of substrates with minimal waste and high accuracy. This method enables precise control over coating thickness, distribution and material usage, making it well suited to applications requiring micro-scale deposition and tight process tolerances.

The company’s product portfolio includes bench-top research and development stations, pilot-scale units and full production systems.