Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank as of October 21, including Verastem, Inc., Amer Sports, Inc., and Sono-Tek Corporation [1][2][3] Company Summaries - **Verastem, Inc. (VSTM)**: - Zacks Rank 1 - Current year earnings estimate increased by 21.5% over the last 60 days - Shares gained 52.2% over the last three months, outperforming the S&P 500's 5.7% increase - Momentum Score of A [1] - **Amer Sports, Inc. (AS)**: - Zacks Rank 1 - Current year earnings estimate increased by 9.1% over the last 60 days - Shares gained 38.7% over the past six months, compared to the S&P 500's 26.2% increase - Momentum Score of A [2] - **Sono-Tek Corporation (SOTK)**: - Zacks Rank 1 - Current year earnings estimate increased by 37.5% over the last 60 days - Shares gained 15.9% over the last three months, outperforming the S&P 500's 5.7% increase - Momentum Score of A [3]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Earnings Estimates - Newmont Corporation (NEM) has seen a 6.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Royal Bank of Canada (RY) has experienced a 5.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Amer Sports, Inc. (AS) has seen a 9.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Verastem, Inc. (VSTM) has experienced a significant 21.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Sono-Tek Corporation (SOTK) has seen a remarkable 37.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Viewpoint - Sono-Tek Corporation (SOTK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [2][3]. - The recent upgrade for Sono-Tek suggests an improvement in its earnings outlook, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between earnings estimate revisions and near-term stock price movements, making it beneficial for investors to track these revisions [7]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specifics on Sono-Tek's Earnings Estimates - Sono-Tek is projected to earn $0.08 per share for the fiscal year ending February 2026, with no year-over-year change expected [9]. - Over the past three months, the Zacks Consensus Estimate for Sono-Tek has increased by 100%, indicating a significant upward revision in earnings expectations [9]. Conclusion on Zacks Rating System - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [10]. - Sono-Tek's upgrade to Zacks Rank 1 places it in the top 5% of stocks based on estimate revisions, suggesting potential for market-beating returns in the near term [11].

Financial Data and Key Metrics Changes - For the second quarter, revenue increased slightly to $5,160,000 compared to $5,130,000 in the previous quarter, marking the sixth consecutive quarter of revenue over $5,000,000 [20][29] - Net income for the quarter increased 27% to $431,000 compared to $340,000 last year, reflecting higher gross profit and lower operating expenses [20][33] - For the first half of fiscal year 2026, total sales reached a record $10,300,000, up from $10,190,000 in the previous year, with net income increasing 36% to $917,000 [23][37] Business Line Data and Key Metrics Changes - Medical market sales increased by 150% year over year to $1,000,000, driven by balloon coating systems shipped to the U.S., Europe, and China [19][22] - Integrated Coatings Systems sales decreased by 24% to $1,530,000, primarily due to a customer-requested delivery delay [21] - OEM sales increased by 92% to $394,000, driven by strong shipments to Fluxer OEMs and new optics-related OEM wins [21] Market Data and Key Metrics Changes - U.S.-Canada sales decreased by 22% year over year, driven by slowing momentum in the clean energy industry [20] - Sales in Asia increased by 153% year over year, with major growth in China and other parts of Asia [20] - EMEA sales increased by 25%, while Latin America sales decreased by $74,000 [21] Company Strategy and Development Direction - The company has shifted to offering larger, more complex systems, which has broadened its addressable market and increased average unit selling prices [9][16] - The diversification strategy has shown momentum in the medical device industry, offsetting declines in clean energy orders [14][27] - Investments in R&D and application engineering are aimed at enhancing customer partnerships and driving long-term growth [64][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, supported by a solid backlog of $11,200,000 and a strong balance sheet with $10,600,000 in cash and no debt [15][26] - The company anticipates modest revenue growth for the full fiscal year, balancing caution with expected demand from the medical device industry [15][27] - Management noted that the clean energy sector is expected to decline this year, but diversification efforts are expected to mitigate this impact [14][27] Other Important Information - The company reported a gross profit margin increase to 50% for the second quarter, attributed to a favorable product mix and reduced costs [29][30] - The company has invested $1,300,000 in R&D for the first half of fiscal year 2026, compared to $1,400,000 in the previous year [26][34] - The company maintains a strong cash position with no outstanding debt, allowing for continued investment in growth initiatives [37] Q&A Session Summary Question: Insights on medical device strength and Chinese exposure - Management noted that despite challenges in the Chinese market, significant orders have been captured due to superior quality compared to local competitors [42][45] Question: Details on new optics-related OEMs - Management indicated that these new partnerships are significant for long-term market entry, although immediate revenue impact may be limited [76] Question: Semiconductor market outlook - Management reported strong interest from customers at a recent trade show, indicating potential growth in the semiconductor sector [79] Question: Backlog revenue recognition timeframe - The majority of recent large orders will be recognized in FY 2027, with some expected to ship in the current fiscal year [87] Question: Projections for second half sales - Management expects Q3 to be slightly higher than Q4 due to a system shipment delay [90]

Core Insights - Sono-Tek Corporation (SOTK) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, marking a 50% earnings surprise [1][2] - The company posted revenues of $5.16 million for the quarter ended August 2025, which matched year-ago revenues but fell short of the Zacks Consensus Estimate by 0.71% [2] - Sono-Tek has surpassed consensus EPS estimates three times over the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $4.93 million, while for the current fiscal year, it is $0.08 on revenues of $20.33 million [7] Industry Context - The Electronics - Semiconductors industry, to which Sono-Tek belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Total net sales for the six months ended August 31, 2025, were $10,295,469, a 1.0% increase from $10,192,820 in the same period of 2024[12] - Gross profit for the six months ended August 31, 2025, was $5,254,251, compared to $4,970,584 for the same period in 2024, reflecting a gross margin increase[12] - Operating income increased to $904,522 for the six months ended August 31, 2025, up from $524,286 in the prior year, representing a 72.2% increase[12] - Net income for the six months ended August 31, 2025, was $908,678, a 35.3% increase from $671,522 in the same period of 2024[12] - Total revenues for the six months ended August 31, 2025, were $10,295,000, a slight increase from $10,193,000 in the same period of 2024[60] - Net income for the six months ended August 31, 2025, was $908,000, compared to $672,000 for the same period in 2024, representing a 35% increase[60] Cash and Assets - Cash and cash equivalents decreased to $3,832,133 as of August 31, 2025, down from $5,202,361 at the end of February 2025[10] - Total current assets increased to $19,121,678 as of August 31, 2025, compared to $18,988,465 at the end of February 2025[10] - Total stockholders' equity rose to $18,695,669 as of August 31, 2025, up from $17,792,195 at the end of February 2025[10] - As of August 31, 2025, the Company reported cash and cash equivalents of $1,653,000 exceeding the insured limit by the Federal Deposit Insurance Corporation[22] - The fair value of marketable securities was $6,736,469 as of August 31, 2025, compared to $6,727,678 as of February 28, 2025, indicating a slight increase[28] Expenses and Costs - Research and product development costs for the six months ended August 31, 2025, were $1,295,748, a decrease from $1,427,303 in the same period of 2024[12] - The total cost of goods and services for the six months ended August 31, 2025, was $5,041,000, compared to $5,222,000 in the same period of 2024, showing a decrease of approximately 3.5%[60] - Total operating expenses for the six months ended August 31, 2025, were $4,350,000, compared to $4,446,000 for the same period in 2024[60] Inventory and Revenue Recognition - Inventories totaled $4,152,027 as of August 31, 2025, down from $4,474,401 as of February 28, 2025[44] - The Company recorded approximately $67,000 in additional allowances for slow-moving inventory during the six months ended August 31, 2025[46] - The Company recognized $1,859,000 in revenue from cash deposits during the six months ended August 31, 2025[42] - The Company’s performance obligations are primarily satisfied upon the transfer of control of manufactured equipment to customers[40] - As of August 31, 2025, the Company had contract liabilities of approximately $1,907,000 in cash deposits[42] Customer and Market Information - Sales to foreign customers accounted for approximately $4,033,000, or 39% of total revenues for the first half of fiscal 2026, compared to 35% in fiscal 2025[55] - The Company had one customer that accounted for 43% of total sales during the first half of fiscal 2026, indicating a high customer concentration risk[57] Stock Options and Compensation - The Company granted options to acquire 140,277 shares to employees and 35,088 shares to non-employee directors during the six months ended August 31, 2025, with exercise prices ranging from $3.25 to $3.77[49] - For the six months ended August 31, 2025, the Company recognized $146,000 in stock-based compensation expense, compared to $97,000 for the same period in 2024, reflecting a 50% increase[50] - The aggregate intrinsic value of the Company's vested and exercisable options at August 31, 2025, was approximately $30,000[51] - The weighted average Black-Scholes assumptions for options granted included a risk-free interest rate of 3.81% to 4.32% and expected volatility of 54.49% to 56.95%[50] Credit and Financing - The Company has a $1,500,000 revolving line of credit, with $106,000 utilized for Letters of Credit as of August 31, 2025, leaving an unused portion of $1,394,000[53] Legislative Impact - The One Big Beautiful Bill Act, signed into law on July 4, 2025, reinstated 100% bonus depreciation for qualified property, impacting future tax calculations[30] Company Operations - The company continues to focus on the design and manufacture of ultrasonic coating systems for various markets, including microelectronics and medical applications[20] - The company is a leader in designing and manufacturing ultrasonic coating systems for various markets, including microelectronics and medical sectors, focusing on custom-engineered solutions[20]

Core Insights - Sono-Tek Corporation reported a sixth consecutive quarter of revenue exceeding $5 million, with a notable 150% year-over-year increase in medical market sales [1][3][5] - The company achieved a 35% increase in net income for the first half of fiscal year 2026, reflecting strong demand in the medical device market [1][5][17] - Sono-Tek's backlog increased by 50% sequentially, indicating robust new order momentum [1][5][12] Financial Performance - For the second quarter of fiscal 2026, net sales reached $5.163 million, slightly up from $5.162 million year-over-year [5][8] - Gross profit for the quarter increased by 3% to $2.6 million, with a gross margin of 50% [5][8] - Net income for the quarter rose 24% to $424 thousand, or $0.03 per share, compared to $341 thousand, or $0.02 per share, in the prior year [5][8] First Half Overview - Record revenue for the first half of fiscal 2026 was $10.30 million, up from $10.19 million in the same period last year [5][9] - Gross profit for the first half increased by 6% to $5.3 million, with a gross margin of 51% [5][9][17] - Net income for the first half rose 35% to $909 thousand, or $0.06 per share, compared to $672 thousand, or $0.04 per share, in the previous year [5][9][17] Market and Product Insights - The medical market sales surged by 150% year-over-year, driven by strong demand for balloon coating systems [5][8][26] - Sales in the alternative/clean energy sector decreased slightly by 3% year-over-year, while the electronics market saw a decline of 1% [5][8][26] - The industrial market experienced a significant decline of 68% year-over-year, influenced by a large order in FY 2025 that did not repeat [5][8][26] Geographic Sales Performance - Sales in the U.S. and Canada decreased by 22% year-over-year, while sales in Asia increased by 153% [5][11][27] - EMEA sales rose by 25%, while Latin American sales declined by 45% [5][11][27] Balance Sheet and Cash Flow - As of August 31, 2025, cash, cash equivalents, and marketable securities totaled $10.6 million, with no outstanding debt [5][12] - The company anticipates capital expenditures of approximately $300 thousand for fiscal year 2026 [5][12]

Core Insights - Sono-Tek Corporation has received a purchase order valued at over $2.8 million from a major U.S.-based medical device manufacturer, indicating strong demand for its ultrasonic coating systems [1][2] - The order includes multiple advanced ExactaCoat MD systems, which have expanded capabilities compared to previously supplied equipment, and will be installed alongside existing Sono-Tek equipment [2][3] - This order reflects the company's strong position in the medical device sector, which is a critical growth driver in its long-term strategy, and highlights the ability to secure repeat, multi-million-dollar orders from various leading manufacturers [3] Company Overview - Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems, serving diverse industries such as microelectronics, alternative energy, medical devices, and advanced industrial manufacturing [4] - The company is transitioning its product line from R&D to high-volume production machines with significantly higher average selling prices, showcasing its market leadership and adaptability [5] - Sono-Tek's ultrasonic coating systems are contributing to advancements in clean energy technologies, including next-gen solar cells and carbon capture applications [4][5]

Core Insights - Sono-Tek Corporation will hold a conference call on October 14, 2025, to discuss its fiscal second quarter and first half 2026 financial results, which ended on August 31, 2025 [1][2]. Company Overview - Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems, serving various industries such as microelectronics, alternative energy, medical devices, and advanced industrial manufacturing [5][6]. - The company is making significant advancements in the clean energy sector, particularly in next-generation solar cells, fuel cells, green hydrogen generation, and carbon capture applications [5]. Product and Market Strategy - Sono-Tek's product line is evolving from research and development to high-volume production machines, indicating a shift towards higher average selling prices and showcasing market leadership [6]. - The company employs a strategic distribution network that includes direct sales personnel, independent distributors, and experienced sales representatives to ensure efficient market reach across diverse sectors globally [6]. Environmental Impact - The solutions provided by Sono-Tek are environmentally friendly and efficient, leading to significant reductions in overspray, raw material usage, water and energy consumption, while improving process repeatability and reducing emissions [7]. Growth Strategy - Sono-Tek's growth strategy focuses on leveraging innovative technologies and proprietary know-how to enhance thin film coating technologies, aiming for better outcomes for customers' products and processes [8].

[Form 8-K Filing Details](index=1&type=section&id=Form%208-K%20Filing%20Details) This section outlines Sono-Tek Corporation's fundamental identification and contact information for its 8-K filing [Registrant and Filing Information](index=1&type=section&id=Registrant%20and%20Filing%20Information) This section details Sono-Tek Corporation's legal name, state of incorporation, principal executive offices, and contact number - Registrant: **Sono-Tek Corporation**[1](index=1&type=chunk) - State of Incorporation: **New York**[1](index=1&type=chunk) - Principal Executive Offices: **2012 Route 9W, Milton, New York 12547**[1](index=1&type=chunk) - Telephone Number: **(845) 795-2020**[1](index=1&type=chunk) [Securities Registration and Emerging Growth Company Status](index=1&type=section&id=Securities%20Registration%20and%20Emerging%20Growth%20Company%20Status) This section details the registrant's registered securities and confirms its status regarding the 'emerging growth company' definition | Title of each class | Symbol(s) | Name of each exchange on which registered | | :------------------ | :-------- | :---------------------------------------- | | Common Stock, $0.01 par value per share | SOTK | NASDAQ | - Sono-Tek Corporation is **not an 'emerging growth company'** as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934[3](index=3&type=chunk) [Current Report Event Disclosure](index=2&type=section&id=Current%20Report%20Event%20Disclosure) This section discloses significant events reported in the 8-K, including a major order and related legal disclaimers [Item 2.02: Results of Operations and Financial Condition & Item 7.01: Regulation FD Disclosure](index=2&type=section&id=Item%202.02%3A%20Results%20of%20Operations%20and%20Financial%20Condition%20%26%20Item%207.01%3A%20Regulation%20FD%20Disclosure) This section details a significant medical device coating systems order and clarifies the legal status of the furnished information [Medical Device Coating Systems Order](index=2&type=section&id=Medical%20Device%20Coating%20Systems%20Order) Sono-Tek Corporation announced a substantial order for medical device coating systems, indicating a positive operational development - Sono-Tek Corporation received an order for medical device coating systems valued at **over $5 Million**[4](index=4&type=chunk) - The order was announced via a press release dated **September 3, 2025**[4](index=4&type=chunk) [Information Furnishing Disclaimer](index=2&type=section&id=Information%20Furnishing%20Disclaimer) A standard disclaimer clarifies the legal status of the information provided under Item 2.02 and Item 7.01 - The information furnished pursuant to Item 2.02 and Item 7.01, including Exhibit 99.1, is **not deemed 'filed'** for purposes of Section 18 of the Securities Exchange Act of 1934[5](index=5&type=chunk) - This information is also **not subject to the liabilities under Section 18** and shall not be deemed incorporated by reference into any Company filing under the Securities Act of 1933 or the Exchange Act[5](index=5&type=chunk) [Exhibits and Signatures](index=2&type=section&id=Exhibits%20and%20Signatures) This section lists the accompanying exhibits and confirms the official signing of the report [Item 9.01: Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%3A%20Financial%20Statements%20and%20Exhibits) This section lists the exhibit accompanying the 8-K filing, which is the press release detailing the significant order - Exhibit 99.1 is the press release dated **September 3, 2025**, regarding the medical device coating systems order[6](index=6&type=chunk) [Signatures](index=2&type=section&id=Signatures) The report is duly signed by an authorized officer of Sono-Tek Corporation - The report was signed by **Stephen J. Bagley, Chief Financial Officer** of Sono-Tek Corporation[6](index=6&type=chunk) - The signing date was **September 3, 2025**[6](index=6&type=chunk)