DMC Global (NASDAQ:BOOM) Posts Quarterly Earnings Results, Beats Expectations By $0.19 EPS

DMC Global (NASDAQ:BOOM) issued its quarterly earnings results on Wednesday. The industrial products company reported $0.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.15) by $0.19, FiscalAI reports. DMC Global had a negative return on equity of 6.80% and a negative net margin of 3.37%.The business had revenue of $156.95 million for the quarter, compared to the consensus estimate of $148.97 million.

Here are the key takeaways from DMC Global’s conference call:

• Second-quarter results exceeded expectations: Consolidated sales were $157 million, at the high end of guidance, while adjusted EBITDA attributable to DMC was $10.7 million, above the forecast range.
• Arcadia showed significant improvement despite a prolonged commercial construction downturn. Sales rose 9% year over year and 19% sequentially, supported by stronger short-cycle storefront demand, improved product availability and service, and a streamlined residential offering.
• DynaEnergetics sales increased 13% sequentially, but profitability remained pressured by unfavorable product mix, pricing pressure, higher input costs and tariffs. The company expects improved well-completion activity in the second half and has begun shipping a perforating system for the emerging enhanced geothermal systems market.
• NobelClad sales increased 15% sequentially as petrochemical deliveries resumed, and management expects stronger second-half shipments from its healthy backlog as customer-related delays ease.
• Liquidity weakened as net debt rose to $30.5 million from $18.7 million at year-end and operating cash flow was negative $8 million, primarily due to working-capital investment. DMC also faces uncertainty beginning September 6, when Arcadia’s 40% partner may exercise its put option, potentially requiring substantial cash and/or preferred-share issuance.

DMC Global Price Performance

Shares of BOOM stock traded up $0.44 on Friday, hitting $6.70. 135,134 shares of the company’s stock were exchanged, compared to its average volume of 316,008. The company has a 50 day moving average of $6.52 and a 200 day moving average of $6.64. The stock has a market cap of $137.18 million, a P/E ratio of -7.20 and a beta of 1.74. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.39 and a quick ratio of 1.07. DMC Global has a 12 month low of $4.69 and a 12 month high of $9.20.

Analysts Set New Price Targets

A number of research firms have recently weighed in on BOOM. Zacks Research upgraded DMC Global from a “strong sell” rating to a “hold” rating in a research report on Monday, April 27th. Wall Street Zen upgraded DMC Global from a “sell” rating to a “hold” rating in a research report on Sunday, May 3rd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of DMC Global in a research note on Friday, May 22nd. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, DMC Global has a consensus rating of “Hold” and an average price target of $8.50.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Invesco Ltd. boosted its stake in shares of DMC Global by 11.3% in the 4th quarter. Invesco Ltd. now owns 50,783 shares of the industrial products company’s stock valued at $340,000 after purchasing an additional 5,141 shares in the last quarter. Mackenzie Financial Corp acquired a new position in DMC Global during the 4th quarter worth approximately $1,953,000. Empowered Funds LLC increased its position in DMC Global by 11.0% during the 4th quarter. Empowered Funds LLC now owns 136,984 shares of the industrial products company’s stock worth $916,000 after purchasing an additional 13,543 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in DMC Global by 45.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 41,727 shares of the industrial products company’s stock valued at $280,000 after purchasing an additional 13,100 shares during the last quarter. Finally, Russell Investments Group Ltd. lifted its stake in DMC Global by 1,525.0% in the 4th quarter. Russell Investments Group Ltd. now owns 28,747 shares of the industrial products company’s stock valued at $192,000 after purchasing an additional 26,978 shares during the last quarter. Institutional investors and hedge funds own 77.63% of the company’s stock.

DMC Global Company Profile

DMC Global Inc (NASDAQ: BOOM) is a diversified industrial company headquartered in Houston, Texas. It operates through two core business segments—EVI and MECO—that deliver engineered products and services primarily to the mining, oil and gas, and water treatment markets. The company focuses on innovation, precision manufacturing and aftermarket support to help clients improve operational efficiency and safety in challenging environments.

The EVI segment, operating under the DynaEnergetics brand, designs and manufactures explosive perforating systems, well completion tools and precision components for the non-metallic mining and oilfield services industries.