On Monday, B.Riley, a financial services firm, increased the price target for Byrna Technologies Inc. (NASDAQ: BYRN) to $17, up from the previous $14, while retaining a Buy rating on the stock. This adjustment follows Byrna's release of their first-quarter 2024 financial results before the market opened on Wednesday, which surpassed analyst expectations.
The company reported sales of $16.7 million, a gross margin of 57.9%, and adjusted EBITDA of $1.2 million. These figures exceeded the consensus estimates, which had forecasted sales of $11.5 million, a gross margin of 57.2%, and an adjusted EBITDA loss of $0.8 million. The strong performance has been attributed to various growth strategies, including celebrity endorsements and a new television advertising approach, which have driven sales up by 98% to a new record.
Direct-to-consumer sales reached new heights, with Byrna's website and Amazon (NASDAQ:AMZN) sales increasing by 115% and 89%, respectively. The company is also evaluating the potential of franchising and is in the midst of a Chief Financial Officer transition.
In light of these developments, Byrna Technologies is strategically managing their advertising expenditures to align growth with their expanding production capacity, which has grown from 10,000 units per month to 12,500 in February, with plans to reach 18,000 units by May.
B.Riley has revised its full-year 2024 sales, adjusted EBITDA, and earnings per share estimates for Byrna Technologies from $53.7 million, $34,000, and a loss of $0.25 per share to $63.3 million, $2.5 million, and a loss of $0.14 per share, respectively. The robust first-quarter results and the upward adjustment of financial forecasts reflect the company's strong performance and growth trajectory.
InvestingPro Insights
Following the upbeat financial report from Byrna Technologies Inc. (NASDAQ: BYRN) and the increased price target from B.Riley, InvestingPro data provides a deeper dive into the company's financial health and market performance. Byrna Technologies holds a market capitalization of $340.37 million and has been trading near its 52-week high with a price 86.68% of that peak.
This reflects investor confidence following a year where the stock delivered a 77.32% return. Despite a negative P/E ratio of -54.53, which indicates the company is not currently profitable, analysts have noted that Byrna's strong sales growth—up 98% quarterly—and impressive gross profit margin of 55.1% are promising signs.
InvestingPro Tips highlight 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 anticipate further sales growth in the current year.
Still, they do not expect the company to be profitable within this period. For investors looking to explore more about Byrna's investment potential, there are additional InvestingPro Tips available, providing a comprehensive understanding of the stock's outlook. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and unlock these insights at https://www.investing.com/pro/BYRN.
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