Coda Octopus Group (NASDAQ:CODA) Posts Earnings Results, Meets Estimates

Coda Octopus Group (NASDAQ:CODA) posted its earnings results on Monday. The company reported $0.12 EPS for the quarter, hitting the consensus estimate of $0.12, FiscalAI reports. Coda Octopus Group had a net margin of 17.64% and a return on equity of 8.42%. The company had revenue of $7.72 million during the quarter, compared to the consensus estimate of $7.26 million.

Here are the key takeaways from Coda Octopus Group’s conference call:

• Third-quarter results grew despite regional disruption: Revenue increased 9.2% to $7.7 million and pre-tax income rose 16% to $1.8 million, supported by the Defense Engineering Services and Acoustic Sensors and Materials businesses.
• Defense Engineering Services delivered strong growth, with revenue up 68.3% year over year on increased activity in sustainment, repairs, spares, and next-generation electronic-warfare programs. Year-to-date spares orders exceeded $2.4 million.
• Marine Technology revenue fell 15.2% as geopolitical instability reduced customer activity in the Middle East and parts of Asia. Management characterized the impact as primarily timing-related, but said opportunities remain deferred and quarterly results may stay lumpy.
• DAVD and NANO technology adoption advanced: DAVD received U.S. Navy authorization for Navy Use, the company secured approximately $1.4 million in additional DAVD-related orders, and NANO is nearing sea-acceptance trials on an underwater vehicle platform that could lead to broader procurement.
• The company maintained financial flexibility, ending the quarter with $31.7 million in cash, no debt, and positive retained earnings for the first time. Management also said it continues to evaluate disciplined M&A opportunities, though it provided no specific acquisition timing.

Coda Octopus Group Stock Down 0.3%

Shares of NASDAQ CODA opened at $10.70 on Wednesday. The company has a market capitalization of $120.70 million, a PE ratio of 24.32 and a beta of 0.60. The stock’s 50 day moving average price is $10.13 and its 200-day moving average price is $11.28. Coda Octopus Group has a twelve month low of $7.80 and a twelve month high of $17.28.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Coda Octopus Group in a research note on Tuesday, September 1st. UBS Group upgraded Coda Octopus Group to a “buy” rating in a report on Thursday, June 18th. Finally, Wall Street Zen cut Coda Octopus Group from a “buy” rating to a “hold” rating in a research report on Saturday, June 13th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $14.00.

About Coda Octopus Group

Coda Octopus Group, Inc is a marine technology company that develops and supplies underwater survey, imaging and positioning systems. Its products are designed to provide real-time three-dimensional views of the seafloor and submerged structures, supporting applications such as hydrographic surveying, marine construction, offshore energy, port security and defense.

The company’s technology portfolio includes the Echoscope® real-time 3D sonar, acoustic positioning and tracking systems, and software for collecting, visualizing and analyzing subsea data.