B.Riley, a financial services firm, raised their price target on Byrna Technologies Inc. (NASDAQ: BYRN) to $17 on Monday, from $14 previously, while maintaining a Buy rating on the stock. This adjustment follows Byrna’s release of first-quarter 2024 financial results before the market opened on Wednesday, which beat analysts’ expectations.
The company reported revenue of $16.7 million, a gross margin of 57.9% and adjusted EBITDA of $1.2 million. These numbers beat consensus estimates, which called for revenue of $11.5 million, a gross margin of 57.2% and an adjusted EBITDA loss of $0.8 million. The strong performance was attributed to various growth strategies, including celebrity endorsements and a new television advertising approach, which drove sales to increase 98% to a new record.
Direct-to-consumer sales reached new heights, with Byrna and Amazon (NASDAQ:) website sales rising 115% and 89%, respectively. The company is also evaluating franchising potential and is in the midst of a chief financial officer transition.
In light of these developments, Byrna Technologies is strategically managing its advertising spend to align growth with its expanding manufacturing capacity, which grew from 10,000 units per month to 12,500 in February, with plans to reach 18,000 units by May .
B.Riley revised estimates for Byrna Technologies’ full-year 2024 sales, adjusted EBITDA and earnings per share from $53.7 million, to $34,000 and a loss of $0.25 per share to 63 $2.5 million and a loss of $0.14 per share. , respectively. The strong first quarter results and upward adjustment to financial forecasts reflect the company’s strong performance and growth trajectory.
Insights on InvestingPro
Following Byrna Technologies Inc.’s (NASDAQ:BYRN) upbeat financial report and B.Riley’s price target increase, InvestingPro data provides a deeper insight into the company’s financial health and market performance . Byrna Technologies holds a market capitalization of $340.37 million and was trading near its 52-week high with a price that was 86.68% of that peak.
This reflects investor confidence after a year in which the stock produced a return of 77.32%. Despite a negative P/E ratio of -54.53, indicating that the company is currently unprofitable, analysts noted that Byrna’s strong sales growth, up 98% quarter-over-quarter, and impressive margin of gross profit of 55.1% are promising signs.
InvestingPro Tips highlights that Byrna Technologies has more cash than debt on its balance sheet and liquid assets that exceed short-term obligations, suggesting financial stability. Analysts also expect further sales growth for the current year.
However, they do not expect the company to turn a profit within this period. For investors looking to explore more about Byrna’s investment potential, additional tips from InvestingPro are available, which provide a comprehensive understanding of the stock’s prospects. Use the coupon code PRONEWS24 to get an additional 10% discount on a one-year or two-year Pro and Pro+ subscription and unlock these insights at https://www.investing.com/pro/BYRN.
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