Mass-notification firm Genasys' Q4 revenue surges

Reuters12-10
Mass-notification firm Genasys' Q4 revenue surges

Overview

  • Protective communications firm's Q4 revenue rises 152.6% yr/yr

  • Company returned to positive operating income and adjusted EBITDA after seven quarters

Outlook

  • Genasys expects sustained yr-over-yr revenue growth with gross margins near 50%

  • Company anticipates Early Warning System projects to drive growth through 2026 and 2027

  • Genasys sees ongoing growth in software offerings for crisis communication

Result Drivers

  • HARDWARE REVENUE - Significant increase in hardware revenue, driven by Puerto Rico Early Warning System Project, contributed to higher gross margins

  • INTERNATIONAL INTEREST - Growing demand for LRAD systems internationally, with new orders from U.S. Military and Asia Pacific region

  • COST REDUCTION - Decreased operating expenses due to cost-cutting measures, contributing to improved financial performance

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

$17.03 mln

$20.60 mln (2 Analysts)

Q4 Net Income

-$1.41 mln

Q4 Adjusted EBITDA

$2.38 mln

$250,000 (2 Analysts)

Q4 Gross Profit

$8.57 mln

Q4 Income From Operations

$1.31 mln

Q4 Pretax Profit

-$1.37 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the communications & networking peer group is "buy"

  • Wall Street's median 12-month price target for Genasys Inc is $5.13, about 117.4% above its December 8 closing price of $2.36

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw1MH7nra

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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