Shock absorber maker Taylor Devices' Q1 sales fall

Overview

• US shock absorption device maker's fiscal Q1 sales fell 26% yr/yr

• Fiscal Q1 net earnings declined sharply from prior year

• Lower sales due to late-arriving backlog delaying revenue recognition

Outlook

• Company says it will continue investments in team, R&D and facilities in FY27

Result Drivers

• LOWER SALES VOLUME - Co said late-arriving backlog in prior fiscal year pushed associated sales recognition out of Q1, reducing sales and profitability

• PRODUCT MIX & DEVELOPMENT - Co said product sales mix and new product development efforts further pressured margins in Q1

• MARKET CONDITIONS - Co said structural markets faced headwinds from higher interest rates and FX, while aerospace/defense benefited from global unrest

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Taylor Devices Inc is $70.00, about 14.5% above its October 1 closing price of $61.11

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

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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.)