Coda Octopus Group (NASDAQ:CODA) Releases Earnings Results

Coda Octopus Group (NASDAQ:CODA) posted its earnings results on Monday. The company reported $0.15 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.02, FiscalAI reports. The business had revenue of $6.90 million during the quarter, compared to analyst estimates of $7.52 million. Coda Octopus Group had a return on equity of 8.44% and a net margin of 17.66%.

Here are the key takeaways from Coda Octopus Group’s conference call:

• Profitability improved despite slightly lower revenue: Q2 revenue fell 1.6% to $6.9 million, but gross margin rose to 66.3%, operating income increased 64.8% to $1.8 million, and diluted EPS doubled to $0.15 from $0.08.
• Marine Technology weakness was driven by geopolitics: The core Marine Technology segment revenue declined 26.8% as conflict and instability in the Middle East and parts of Asia reduced customer activity, with hardware sales down sharply. Management said the issue appears to be timing-related rather than structural.
• DAVD received a key Navy approval: Blair Cunningham said the DAVD Untethered System has been approved for Navy use, making it available for acquisition and enabling deployment of previously issued systems. Management expects third-quarter orders once procurement budgets are finalized.
• NanoGen won an initial order and may open a new growth channel: Coda Octopus received an initial order for NanoGen ultra-miniaturized 3D sonar for an established vehicle program, and management believes successful evaluation could lead to a rapid scale-up. The company also cited several other vehicle integration opportunities in both U.S. and European defense markets.
• Balance sheet remains strong and M&A remains active: The company ended the quarter with $30.6 million in cash and no debt, while management said it has two active acquisition opportunities under due diligence. They reiterated a disciplined M&A strategy aimed at supporting a more recurring, program-based revenue model.

Coda Octopus Group Price Performance

CODA stock opened at $9.31 on Wednesday. The company has a market cap of $104.98 million, a P/E ratio of 21.65 and a beta of 0.57. Coda Octopus Group has a 1 year low of $7.01 and a 1 year high of $17.28. The stock’s fifty day moving average price is $11.93 and its 200-day moving average price is $11.54.

Insider Activity

In other news, CFO Gayle Michelle Jardine sold 2,256 shares of the firm’s stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $12.59, for a total value of $28,403.04. Following the transaction, the chief financial officer directly owned 2,500 shares in the company, valued at $31,475. This trade represents a 47.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 21.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Coda Octopus Group

A number of institutional investors and hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP boosted its stake in shares of Coda Octopus Group by 2.6% in the 3rd quarter. Dimensional Fund Advisors LP now owns 61,561 shares of the company’s stock worth $494,000 after buying an additional 1,562 shares during the last quarter. State Street Corp lifted its position in Coda Octopus Group by 6.3% during the fourth quarter. State Street Corp now owns 33,903 shares of the company’s stock valued at $315,000 after purchasing an additional 2,000 shares in the last quarter. Bank of America Corp DE lifted its position in Coda Octopus Group by 5,475.0% during the third quarter. Bank of America Corp DE now owns 3,122 shares of the company’s stock valued at $25,000 after purchasing an additional 3,066 shares in the last quarter. Commonwealth Equity Services LLC lifted its position in Coda Octopus Group by 50.0% during the fourth quarter. Commonwealth Equity Services LLC now owns 15,000 shares of the company’s stock valued at $140,000 after purchasing an additional 5,000 shares in the last quarter. Finally, Vanguard Group Inc. lifted its position in Coda Octopus Group by 2.1% during the third quarter. Vanguard Group Inc. now owns 304,058 shares of the company’s stock valued at $2,440,000 after purchasing an additional 6,231 shares in the last quarter. 20.12% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Coda Octopus Group in a report on Thursday, June 4th. Wall Street Zen lowered Coda Octopus Group from a “buy” rating to a “hold” rating in a report on Saturday. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy”.

About Coda Octopus Group

Coda Octopus Group, Inc is a technology company that develops and sells real-time 3D sonar systems and related solutions for underwater applications. Its flagship Echoscope® real-time 3D sonar system enables clients to visualize subsea structures and seabed conditions in unprecedented detail. The company’s product portfolio also includes BathyCORR® geophysical survey processing software, a range of ROV and USV inspection tools, and advanced subsea positioning and motion reference units. These technologies support tasks such as inspection, maintenance, salvage, survey, and security in challenging marine environments.

The company serves a broad set of industries, including offshore oil and gas, marine mining, defense, civil engineering, telecommunications, and scientific research.