Byrna Technologies -Pre-Q4 Earnings: Should Byrna Stock be in Your Portfolio?

Core Viewpoint - Byrna Technologies Inc. is expected to report strong earnings growth in its fourth-quarter fiscal 2024 results, with a consensus estimate of 5 cents per share compared to a loss of 2 cents in the same quarter last year, and projected revenues of $28 million, reflecting a year-over-year growth of 79% [2][14]. Earnings Estimates - The Zacks Consensus Estimate for earnings has increased by 11.8% over the past 60 days, with one upward revision and no downward revisions during this period [3][4]. - Byrna has a history of earnings surprises, having exceeded the Zacks Consensus Estimate in all four trailing quarters, with an average surprise of 532.5% [6][7]. Earnings Prediction Model - The current Earnings ESP for Byrna is 0.00%, and it holds a Zacks Rank of 2 (Buy), indicating a lesser chance of an earnings beat this time [8][9]. Brand Visibility and Market Demand - Byrna has achieved significant brand visibility through a successful celebrity endorsement program and extensive media coverage, which has positively impacted consumer and law enforcement demand for its products [10][11]. Stock Performance - Byrna's stock price has increased by 235% over the past year, significantly outperforming the broader industry growth of 72% and contrasting with declines in other small-cap service providers [12]. Financial Performance - The company reported a remarkable 194% year-over-year sales growth in the last quarter, with net income improving from a loss of$ 4.1 million to a profit of $1.0 million, marking a$ 5.1 million increase [14]. - Byrna's return on equity (ROE) stands at 10.4%, surpassing the industry average of 9.1%, indicating strong profitability and efficient use of equity [15]. Strategic Initiatives - Byrna is expanding its market reach by collaborating with Mexico's Secretaría de Trabajo y Previsión Social to establish a federally certified training program for civilians to carry Byrna devices, and is enhancing its supply chain by shifting ammunition production domestically [16]. - The company is focused on growth investments while remaining debt-free and highly profitable, positioning itself for sustained success through 2025 and beyond [14][16]. Investment Considerations - Byrna is viewed as a compelling growth investment due to its strong brand momentum, expanding market presence, and strategic partnerships, which align with market trends [17][18].