Unusual Machines (NYSEAMERICAN:UMAC) Releases Quarterly Earnings Results, Misses Expectations By $0.15 EPS

Unusual Machines (NYSEAMERICAN:UMAC) issued its quarterly earnings results on Thursday. The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.15), FiscalAI reports. Unusual Machines had a negative return on equity of 22.91% and a negative net margin of 171.38%.The company had revenue of $8.10 million for the quarter, compared to analysts’ expectations of $5.54 million.

Here are the key takeaways from Unusual Machines’ conference call:

• Q1 revenue surged to $8.1 million, up 296% year over year and 65% sequentially, marking the company’s eighth straight record-revenue quarter.
• The company reported $10.3 million in net profit for the quarter and said it remained profitable even after excluding unrealized gains.
• Unusual Machines expanded aggressively, increasing headcount from 81 to 141 during the quarter and adding shifts at its motor and assembly lines, while still posting a 32.8% gross margin.
• Management said the balance sheet is exceptionally strong after raising $150 million in a public offering, bringing total working capital to about $320 million to support inventory and capacity buildout.
• The company is leaning into future growth with a $52 million acquisition of Upgrade Energy to accelerate its battery strategy, which management expects to expand margins and position Unusual Machines for emerging drone delivery demand.

Unusual Machines Stock Performance

Unusual Machines stock traded up $1.96 during mid-day trading on Thursday, reaching $16.93. The company’s stock had a trading volume of 8,000,182 shares, compared to its average volume of 3,790,092. Unusual Machines has a 12-month low of $4.67 and a 12-month high of $23.38. The company has a market capitalization of $659.59 million, a P/E ratio of -20.15 and a beta of 14.32. The firm’s fifty day moving average price is $15.26 and its two-hundred day moving average price is $13.53.

Insider Activity at Unusual Machines

In related news, CFO Brian Joseph Hoff sold 11,413 shares of Unusual Machines stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $18.59, for a total value of $212,167.67. Following the completion of the transaction, the chief financial officer directly owned 514,062 shares in the company, valued at approximately $9,556,412.58. The trade was a 2.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CRO Stacy Rochelle Wright sold 13,750 shares of Unusual Machines stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $18.57, for a total transaction of $255,337.50. Following the completion of the transaction, the executive owned 96,250 shares of the company’s stock, valued at $1,787,362.50. This represents a 12.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 35,768 shares of company stock worth $666,037. Corporate insiders own 7.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Schonfeld Strategic Advisors LLC bought a new position in Unusual Machines in the 4th quarter valued at $189,000. Cetera Investment Advisers boosted its holdings in Unusual Machines by 37.1% in the 4th quarter. Cetera Investment Advisers now owns 14,531 shares of the company’s stock valued at $185,000 after purchasing an additional 3,929 shares during the period. Blair William & Co. IL bought a new position in Unusual Machines in the 4th quarter valued at $187,000. Mariner LLC bought a new position in Unusual Machines in the 4th quarter valued at $204,000. Finally, Commonwealth Equity Services LLC bought a new position in Unusual Machines in the 4th quarter valued at $135,000.

Analyst Ratings Changes

Several brokerages have recently issued reports on UMAC. Roth Mkm began coverage on shares of Unusual Machines in a research note on Wednesday. They set a “buy” rating and a $25.00 price target for the company. Needham & Company LLC restated a “buy” rating and set a $20.00 price target on shares of Unusual Machines in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $21.67.

Unusual Machines Company Profile

Unusual Machines, Inc designs, manufactures, and sells ultra-low latency video goggles for drone pilots. It operates a drone-focused e-commerce marketplace. The company serves drone pilots, hobbyists, and recreational services. The company was formerly known as AerocarveUS Corporation and changed its name to Unusual Machines, Inc in July 2022. Unusual Machines, Inc was incorporated in 2019 and is based in Orlando, Florida.