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Syntec Optics Stock Drops 36% Since Q3 Earnings Release, Sales Up Y/Y
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Shares of Syntec Optics Holdings, Inc. (OPTX - Free Report) have seen significant volatility since their latest earnings release for the quarter ended Sept. 30, 2024. Since the announcement, the company's stock price has dropped by 36.1%, a stark contrast to the modest 2% decrease seen in the S&P 500 index over the same period. This downward trajectory has also extended over the past month, with Syntec's stock declining by 27.2% compared to a slight 0.6% uptick in the S&P 500.
The third-quarter financial results reveal some mixed signals. Syntec Optics reported break-even earnings, which denoted a decline from earnings of 1 cent in the same quarter last year.
Net sales of $7.9 million marks a substantial 19.2% rise from $6.6 million in the same quarter of the previous year. However, despite this growth, the company failed to meet its revenue guidance, which had projected figures between $9.5 and $11 million.
Adjusted EBITDA fell to $1.1 million from $1.3 million a year ago, primarily due to increased general and administrative expenses aimed at supporting future product launches.
The company incurred a net loss of $0.01 million against a net income of $0.4 million in the same quarter last year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Syntec Optics Holdings, Inc. Price, Consensus and EPS Surprise
Notably, product revenues climbed to $7.3 million from $6.3 million in the third quarter of 2023, a healthy increase of 17.2%. This rise is attributed to increased production across several sectors, including data center connectivity products and night vision optics. Despite these gains, the company experienced a reduction in gross profit and other income, which impacted the overall profitability for the quarter.
The company also managed its finances prudently, paying down 3.3% of its principal on commercial bank lines, with $8.7 million in unused credit facilities remaining available, demonstrating continued financial flexibility.
Management Insights and Forward-Looking Statements
Dean Rudy, CFO of Syntec Optics, expressed optimism about the company's strategic expansions, particularly in high-growth markets like space optics for Low-Earth-Orbit satellites and artificial intelligence-driven data centers.
Management expects these initiatives to fuel further revenue growth, projecting a revenue range of $7.4 to $9 million for the fourth quarter of 2024. Additionally, Syntec anticipates steady gross margins while acknowledging a modest increase in general and administrative expenses due to expanded operations.
Future Outlook
Looking ahead, Syntec Optics is optimistic about the upcoming fiscal periods. The company forecasts continued strong sales in the communications, medical and defense industries, with significant contributions expected from space communications optics and datacom microlens arrays. The guidance for the first quarter of 2025 also anticipates growth from new defense product launches driven by ongoing advancements in laser-based satellite communications and biomedical automation.
Other Developments
During the quarter, Syntec Optics also focused on ramping up engineering and pilot production capabilities, which are crucial for supporting sustained growth and innovation in their product lines. These developments are part of a broader strategy to strengthen the company’s market position in diverse and rapidly evolving technological fields.
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Syntec Optics Stock Drops 36% Since Q3 Earnings Release, Sales Up Y/Y
Shares of Syntec Optics Holdings, Inc. (OPTX - Free Report) have seen significant volatility since their latest earnings release for the quarter ended Sept. 30, 2024. Since the announcement, the company's stock price has dropped by 36.1%, a stark contrast to the modest 2% decrease seen in the S&P 500 index over the same period. This downward trajectory has also extended over the past month, with Syntec's stock declining by 27.2% compared to a slight 0.6% uptick in the S&P 500.
The third-quarter financial results reveal some mixed signals. Syntec Optics reported break-even earnings, which denoted a decline from earnings of 1 cent in the same quarter last year.
Net sales of $7.9 million marks a substantial 19.2% rise from $6.6 million in the same quarter of the previous year. However, despite this growth, the company failed to meet its revenue guidance, which had projected figures between $9.5 and $11 million.
Adjusted EBITDA fell to $1.1 million from $1.3 million a year ago, primarily due to increased general and administrative expenses aimed at supporting future product launches.
The company incurred a net loss of $0.01 million against a net income of $0.4 million in the same quarter last year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Syntec Optics Holdings, Inc. Price, Consensus and EPS Surprise
Syntec Optics Holdings, Inc. price-consensus-eps-surprise-chart | Syntec Optics Holdings, Inc. Quote
Financial and Operational Metrics
Notably, product revenues climbed to $7.3 million from $6.3 million in the third quarter of 2023, a healthy increase of 17.2%. This rise is attributed to increased production across several sectors, including data center connectivity products and night vision optics. Despite these gains, the company experienced a reduction in gross profit and other income, which impacted the overall profitability for the quarter.
The company also managed its finances prudently, paying down 3.3% of its principal on commercial bank lines, with $8.7 million in unused credit facilities remaining available, demonstrating continued financial flexibility.
Management Insights and Forward-Looking Statements
Dean Rudy, CFO of Syntec Optics, expressed optimism about the company's strategic expansions, particularly in high-growth markets like space optics for Low-Earth-Orbit satellites and artificial intelligence-driven data centers.
Management expects these initiatives to fuel further revenue growth, projecting a revenue range of $7.4 to $9 million for the fourth quarter of 2024. Additionally, Syntec anticipates steady gross margins while acknowledging a modest increase in general and administrative expenses due to expanded operations.
Future Outlook
Looking ahead, Syntec Optics is optimistic about the upcoming fiscal periods. The company forecasts continued strong sales in the communications, medical and defense industries, with significant contributions expected from space communications optics and datacom microlens arrays. The guidance for the first quarter of 2025 also anticipates growth from new defense product launches driven by ongoing advancements in laser-based satellite communications and biomedical automation.
Other Developments
During the quarter, Syntec Optics also focused on ramping up engineering and pilot production capabilities, which are crucial for supporting sustained growth and innovation in their product lines. These developments are part of a broader strategy to strengthen the company’s market position in diverse and rapidly evolving technological fields.