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Bananas or Bust: Should You Buy Gorilla Before 1H25 Earnings?
GorillaGorilla(US:GRRR) ZACKSยท2025-08-12 16:31

Core Insights - Gorilla Technology Group Inc. is scheduled to report its first-half 2025 results on August 14, 2025, before the market opens [1] - The company has shown significant growth in its first quarter of 2025, with adjusted earnings of 23 cents per share and revenues of $18.3 million, reflecting a year-over-year increase of over 109% [2][8] - The full-year 2025 earnings estimate is projected at 97 cents per share, indicating a 115.8% year-over-year improvement, while revenues are expected to reach $100.01 million, a 33.9% increase from the previous year [4] Financial Performance - The Zacks Consensus Estimate for second-quarter 2025 earnings is currently at 13 cents per share on revenues of $19 million, with one downward revision noted in the past 60 days [2][3] - The company has a $5.6 billion active global pipeline covering 87 projects and plans to secure $1.3 billion in long-term contracts by mid-2026 [17] - Gorilla Technology's stock has declined 6.8% year-to-date, contrasting with the industry's growth of 19.1% [12] Growth Drivers - The company is expected to benefit from growing demand for AI-driven security and edge computing solutions, with strong sales growth anticipated in regions such as MENA, Asia, South America, and the U.K. [9][10] - A partnership with Hewlett Packard Enterprise is expected to enhance market credibility and speed-to-market for critical infrastructure projects [18] - Key initiatives include a nationwide smart education rollout in Thailand and the upcoming "ONE AMAZON" environmental initiative, which is expected to contribute to revenues in Q4 2025 [18] Valuation - Gorilla Technology's current valuation is considered attractive, trading at 2.92X forward 12-month sales, below the industry average of 3.21X [15] - The stock is trading below the Wall Street average price target of $31 per share, indicating a potential upside of 84.2% from current levels [19]