Draganfly (NASDAQ:DPRO) Posts Quarterly Earnings Results, Misses Estimates By $0.13 EPS

Draganfly (NASDAQ:DPRO) released its earnings results on Monday, August 10th. The company reported ($0.24) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.13), Zacks reports. The firm had revenue of $1.93 million during the quarter, compared to analysts’ expectations of $2.56 million. Draganfly had a negative return on equity of 26.61% and a negative net margin of 355.34%.Draganfly’s quarterly revenue was up 26.0% compared to the same quarter last year.

Here are the key takeaways from Draganfly’s conference call:

• Record Q2 revenue reached CAD 2.664 million, up 26% year over year, with product sales exceeding CAD 2.5 million and gross profit of approximately CAD 533,000.
• The company’s comprehensive loss widened to CAD 11.8 million from CAD 4.7 million a year earlier, while adjusted gross margin declined to 21.7% from 24.3% amid higher operating, R&D, personnel, and professional costs.
• Draganfly highlighted a pipeline of more than 50 campuses following its exclusive IACLEA agreement and said its Small and Rural Association partnership could address roughly 80% of U.S. police forces, although the rollout will be phased through pilot programs.
• The DEVCOM counter-drone contract, new Special Forces selections for the Flex FPV, and the Skip Dynamix acquisition strengthen the company’s defense portfolio; management estimates the counter-UAS opportunity could represent hundreds of millions of Canadian dollars over several years.
• Draganfly ended the quarter with CAD 131.9 million in cash and minimal debt, while management expects significant Canadian defense procurement and additional U.S. manufacturing capacity to support a future revenue ramp, though it acknowledged the company is several quarters behind some industry peers.

Draganfly Price Performance

Draganfly stock traded up $0.47 during trading hours on Monday, hitting $5.82. The company had a trading volume of 939,111 shares, compared to its average volume of 1,714,075. Draganfly has a fifty-two week low of $3.78 and a fifty-two week high of $14.40. The firm has a market capitalization of $200.00 million, a P/E ratio of -7.51 and a beta of 2.80. The firm’s fifty day moving average is $4.90 and its 200-day moving average is $5.41.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Needham & Company LLC cut their target price on shares of Draganfly from $12.00 to $8.00 and set a “buy” rating on the stock in a research note on Tuesday, August 11th. Wall Street Zen lowered Draganfly from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 15th. Finally, LADENBURG THALM/SH SH reduced their price objective on Draganfly from $12.75 to $11.50 and set a “buy” rating for the company in a research note on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company’s stock. Based on data from MarketBeat, Draganfly has an average rating of “Buy” and an average price target of $11.62.

About Draganfly

Draganfly Inc is a Canadian drone technology company that develops unmanned aerial vehicles, software and related services for commercial, public-safety and government applications. Founded in 1999, the company describes itself as one of the longest-operating commercial drone manufacturers.

Its product portfolio includes multirotor and specialized drone platforms, including the Commander 3 XL, Flex FPV and Heavy Lift systems. Draganfly also provides drone-based data collection, aerial imaging, mapping, inspection, artificial intelligence and analytics solutions, as well as pilot training and related professional services.

The company serves markets such as public safety, agriculture, industrial inspection, surveying and mapping, logistics, humanitarian operations and environmental monitoring.