Draganfly (NASDAQ:DPRO) Releases Quarterly Earnings Results, Misses Estimates By $0.13 EPS

Draganfly (NASDAQ:DPRO) announced its quarterly earnings data on Monday, August 10th. The company reported ($0.24) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.13), Zacks reports. Draganfly had a negative net margin of 355.34% and a negative return on equity of 26.61%. The firm had revenue of $1.93 million during the quarter, compared to analysts’ expectations of $2.56 million. Draganfly’s quarterly revenue was up 26.0% compared to the same quarter last year.

Here are the key takeaways from Draganfly’s conference call:

• Record Q2 revenue reached CAD 2.664 million, up 26% year over year, with product sales exceeding CAD 2.5 million and gross profit of approximately CAD 533,000.
• The company’s comprehensive loss widened to CAD 11.8 million from CAD 4.7 million a year earlier, while adjusted gross margin declined to 21.7% from 24.3% amid higher operating, R&D, personnel, and professional costs.
• Draganfly highlighted a pipeline of more than 50 campuses following its exclusive IACLEA agreement and said its Small and Rural Association partnership could address roughly 80% of U.S. police forces, although the rollout will be phased through pilot programs.
• The DEVCOM counter-drone contract, new Special Forces selections for the Flex FPV, and the Skip Dynamix acquisition strengthen the company’s defense portfolio; management estimates the counter-UAS opportunity could represent hundreds of millions of Canadian dollars over several years.
• Draganfly ended the quarter with CAD 131.9 million in cash and minimal debt, while management expects significant Canadian defense procurement and additional U.S. manufacturing capacity to support a future revenue ramp, though it acknowledged the company is several quarters behind some industry peers.

Draganfly Stock Down 4.2%

Shares of Draganfly stock opened at $5.77 on Thursday. The firm has a market cap of $198.35 million, a P/E ratio of -7.40 and a beta of 2.80. The business has a 50-day moving average price of $4.72 and a 200 day moving average price of $5.54. Draganfly has a fifty-two week low of $3.78 and a fifty-two week high of $14.40.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DPRO. Concentric Capital Strategies LP purchased a new position in shares of Draganfly during the 4th quarter valued at $1,569,000. Vident Advisory LLC acquired a new position in shares of Draganfly during the fourth quarter valued at about $813,000. Virtu Financial LLC bought a new stake in Draganfly in the 3rd quarter valued at $894,000. Marshall Wace LLP bought a new position in shares of Draganfly during the 4th quarter worth about $751,000. Finally, Scientech Research LLC acquired a new stake in shares of Draganfly during the 3rd quarter valued at about $514,000. 10.39% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Wall Street Zen cut shares of Draganfly from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 15th. Needham & Company LLC decreased their target price on shares of Draganfly from $12.00 to $8.00 and set a “buy” rating on the stock in a research report on Tuesday, August 11th. LADENBURG THALM/SH SH lowered their target price on Draganfly from $12.75 to $11.50 and set a “buy” rating for the company in a report on Thursday, August 13th. Finally, HC Wainwright assumed coverage on shares of Draganfly in a research note on Friday, May 29th. They set a “buy” rating and a $14.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $11.62.

About Draganfly

Draganfly Inc (NASDAQ: DPRO) is a Canada-based developer and manufacturer of unmanned aerial systems (UAS) and related software solutions for commercial, government and academic applications. Headquartered in Saskatoon, Saskatchewan, the company specializes in designing lightweight, modular drones that integrate advanced sensor payloads—including high-resolution imaging, multispectral and thermal cameras—to gather aerial data across a range of industries.

The company’s core offerings include turnkey UAS platforms, data-capture payloads and proprietary analytics software that enable clients to perform precision agriculture monitoring, land surveying, infrastructure inspection and environmental assessment.