DMC Global (NASDAQ:BOOM) Releases Quarterly Earnings Results, Beats Estimates By $0.16 EPS

DMC Global (NASDAQ:BOOM) announced its earnings results on Wednesday. The industrial products company reported $0.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.16, FiscalAI reports. DMC Global had a negative net margin of 4.28% and a negative return on equity of 6.02%.

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 Trading Down 0.7%

Shares of NASDAQ BOOM traded down $0.04 during trading on Wednesday, hitting $5.42. 506,496 shares of the company traded hands, compared to its average volume of 313,275. The firm has a market capitalization of $110.95 million, a P/E ratio of -4.27 and a beta of 1.74. The company has a quick ratio of 1.07, a current ratio of 2.39 and a debt-to-equity ratio of 0.21. The company has a 50-day moving average price of $6.56 and a 200-day moving average price of $6.66. DMC Global has a 1 year low of $4.69 and a 1 year high of $9.20.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Steel Partners Holdings L.P. purchased a new stake in DMC Global during the fourth quarter valued at about $13,200,000. Ameriprise Financial Inc. lifted its stake in shares of DMC Global by 3.8% in the 2nd quarter. Ameriprise Financial Inc. now owns 923,491 shares of the industrial products company’s stock valued at $7,443,000 after purchasing an additional 33,539 shares in the last quarter. Gendell Jeffrey L acquired a new stake in DMC Global during the 4th quarter worth approximately $6,036,000. Federated Hermes Inc. raised its holdings in DMC Global by 159.3% in the second quarter. Federated Hermes Inc. now owns 603,614 shares of the industrial products company’s stock valued at $4,865,000 after buying an additional 370,833 shares during the period. Finally, Cerity Partners LLC raised its holdings in DMC Global by 0.3% in the second quarter. Cerity Partners LLC now owns 554,254 shares of the industrial products company’s stock valued at $4,467,000 after buying an additional 1,755 shares during the period. Institutional investors and hedge funds own 77.63% of the company’s stock.

Analysts Set New Price Targets

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

About DMC Global

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.