Unusual Machines (NYSEAMERICAN:UMAC) Announces Earnings Results

Unusual Machines (NYSEAMERICAN:UMAC) issued its earnings results on Thursday. The company reported ($0.16) earnings per share for the quarter, hitting the consensus estimate of ($0.16), FiscalAI reports. Unusual Machines had a negative return on equity of 11.83% and a negative net margin of 32.71%.The company had revenue of $16.72 million for the quarter, compared to analyst estimates of $9.20 million.

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

• Q2 revenue reached $16.7 million, up 687% year over year and 107% sequentially, with approximately 95% coming from enterprise customers.
• Adjusted EBITDA loss narrowed to approximately $400,000 from $1.6 million in Q1, while gross margin was 34.7%; management said it is targeting operating cash-flow positivity in 2027.
• Management said demand remains supply-constrained through at least 2027, driven by expected Department of War procurement, the Drone Dominance program, and an increasingly significant counter-drone market.
• The company ended the quarter with more than $367 million in working capital, including $229 million of cash and over $86 million in short-term investments, and no debt after raising $60 million at $30 per share.
• Rapid growth is straining infrastructure and supply chains, including shortages of electronics, camera sensors and magnets, a motor quality issue, and limited manufacturing capacity; Q3 internal revenue targets are $12 million-$14 million as the company prepares for a targeted $25 million in Q4.

Unusual Machines Stock Up 8.8%

NYSEAMERICAN:UMAC traded up $2.14 during mid-day trading on Friday, reaching $26.37. 1,949,500 shares of the company were exchanged, compared to its average volume of 4,926,832. Unusual Machines has a 12 month low of $7.24 and a 12 month high of $34.36. The company has a fifty day moving average of $22.52 and a 200 day moving average of $17.73. The stock has a market cap of $1.26 billion, a PE ratio of -62.78 and a beta of 14.92.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Roth Capital increased their price objective on Unusual Machines to $40.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. National Bank Financial set a $42.00 target price on shares of Unusual Machines in a research note on Wednesday, July 15th. Needham & Company LLC raised their price target on Unusual Machines from $30.00 to $40.00 and gave the company a “buy” rating in a research report on Thursday. Finally, HC Wainwright started coverage on Unusual Machines in a research report on Wednesday, July 15th. They set a “buy” rating and a $42.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $36.80.

Insiders Place Their Bets

In other Unusual Machines news, President Andrew Ross Camden sold 100,000 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $30.05, for a total value of $3,005,000.00. Following the transaction, the president directly owned 246,750 shares in the company, valued at approximately $7,414,837.50. This trade represents a 28.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Brian Joseph Hoff sold 150,000 shares of Unusual Machines stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $17.71, for a total value of $2,656,500.00. Following the completion of the sale, the chief financial officer owned 352,650 shares of the company’s stock, valued at approximately $6,245,431.50. The trade was a 29.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 280,000 shares of company stock valued at $6,477,200. Insiders own 7.50% of the company’s stock.

Institutional Trading of Unusual Machines

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Wexford Capital LP bought a new position in shares of Unusual Machines during the 3rd quarter worth approximately $40,000. Cetera Investment Advisers raised its stake in Unusual Machines by 37.1% in the fourth quarter. Cetera Investment Advisers now owns 14,531 shares of the company’s stock valued at $185,000 after buying an additional 3,929 shares during the period. CIBC Private Wealth Group LLC lifted its holdings in Unusual Machines by 133.3% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 7,000 shares of the company’s stock valued at $106,000 after purchasing an additional 4,000 shares during the last quarter. Ankerstar Wealth LLC bought a new stake in shares of Unusual Machines during the 4th quarter worth about $64,000. Finally, Bank of America Corp DE boosted its holdings in shares of Unusual Machines by 7,372.6% during the second quarter. Bank of America Corp DE now owns 7,099 shares of the company’s stock worth $61,000 after acquiring an additional 7,004 shares during the period.

About Unusual Machines

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.