Updated Aug 6 at 2:06pm ET.
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The company reported a loss of about 16 cents per share, which was right in line with what analysts expected. Revenue grew to $117.1 million, a new record for the business. More importantly, its gross margin, the profit left over after paying for the direct costs of building its hardware, rose to nearly 28 percent.
For a business in this stage, the most important number is the backlog, which is the total value of signed contracts for work not yet finished. That backlog hit a record $542.1 million this quarter. This gives the company a clear path for growth as it turns those orders into actual sales, though it still needs to prove it can do so while reaching overall profitability.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Cantor Fitzgerald raised its price target from $9 to $13.50 while keeping an Overweight rating, which is a way of saying they expect the stock to do better than the average market return. This move reflects higher confidence in the company's ability to grow its sales and manage its costs after seeing the latest quarterly numbers.
Source: Cantor Fitzgerald
This new hub in Indiana is designed to handle research and manufacturing in microgravity, or the condition of near-weightlessness found in space. This environment allows for different chemical and biological reactions than on Earth, which is becoming a growing area of interest for drug companies looking for breakthroughs.
By building out this specialized capacity, the company is positioning itself to be the primary infrastructure provider for a new industry. If pharmaceutical firms begin using space for regular research, this facility could become a steady source of high-margin revenue.
Source: Business Wire
This expansion significantly increases the company's ability to build both combat drones and satellite components. Huntsville is a major center for the U.S. aerospace and defense industry, and this move suggests the company is seeing enough demand to justify a much larger manufacturing footprint. Scaling up production is a key step in moving from custom engineering projects to more profitable, high-volume manufacturing.
Source: Business Wire
This $21.5 million order builds on a previous $20 million award for the same drone program. These "follow-on" awards are important because they show a customer is satisfied with the initial work and is committing more money to the project. It also helps diversify the company's revenue away from purely civil space projects and toward more stable defense contracts.
Source: Business Wire
Analysts recently raised their price targets following the company's strong second-quarter earnings report. Most analysts are bullish, with 8 of 10 rating the stock a buy and an average target price that suggests 39% upside from today.
The company has a choppy track record with several large misses over the last two years, but this latest report shows it is finally starting to outrun analyst forecasts.
| Expectation | |
|---|---|
| EPS | $-0.17 |
| Revenue | $125M |
