Pro-Dex Q1 revenue rises 11% helped by medical devices

Overview

• US medical device maker's fiscal Q1 revenue rose 11% yr/yr on higher device sales and new subsidiary

• Gross profit rose 28% yr/yr, with margin up to 33% from 29% on favorable product mix

• Net income fell yr/yr due to lower unrealized gains on investments compared to prior period

Outlook

• Company expects to ship Monogram validation units later in fiscal 2027

Result Drivers

• MEDICAL DEVICE SALES - Co said revenue growth was primarily driven by a $3.3 mln increase in medical device sales, including $1.8 mln from next-generation handpiece to largest customer

• NEW SUBSIDIARY CONTRIBUTION - Newly acquired Advanced Precision Machining subsidiary contributed $511,000 in revenue, exclusive of inter-company sales

• PRODUCT MIX - Gross margin improvement attributed to favorable product mix, per company

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

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

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Pro-Dex Inc is $74.00, about 17.1% above its October 28 closing price of $63.19

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 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.)