BK Technologies (BKTI, Financial) announced a substantial rise in its first-quarter revenue, reaching $19.2 million compared to $18.2 million in the previous year. This performance marks a robust beginning to 2025, bolstered by a significant increase in gross margin to 47.0%. The improved margin results from a favorable product sales mix, effective expense reduction strategies, and a shift to a contract manufacturing model.
The company highlighted sustained demand for its BKR Series radios from state and local government markets. Although federal orders were initially slow due to delays in Congress passing a full-year continuing resolution, the subsequent approval has led to a pickup in federal customer orders. BK Technologies is optimistic about its growth prospects and aims to enhance value for shareholders throughout 2025.
The company projects full-year 2025 GAAP earnings per share to exceed $2.40 per diluted share, with non-GAAP adjusted EPS anticipated to surpass $2.80 per diluted share.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for BK Technologies Corp (BKTI, Financial) is $35.50 with a high estimate of $51.00 and a low estimate of $20.00. The average target implies an downside of 22.27% from the current price of $45.67. More detailed estimate data can be found on the BK Technologies Corp (BKTI) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, BK Technologies Corp's (BKTI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BK Technologies Corp (BKTI, Financial) in one year is $18.50, suggesting a downside of 59.49% from the current price of $45.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BK Technologies Corp (BKTI) Summary page.
BKTI Key Business Developments
Release Date: March 27, 2025
- Revenue (Q4 2024): $17.9 million, up 9.9% from $16.3 million in Q4 2023.
- Full Year Revenue (2024): $76.6 million, up from $74.1 million in 2023.
- Gross Margin (Q4 2024): 41.2%, up from 35.1% in Q4 2023.
- Full Year Gross Margin (2024): 37.9%, up from 30% in 2023.
- Net Income (Q4 2024): $3.7 million, compared to $290,000 in Q4 2023.
- Full Year Net Income (2024): $8.4 million, compared to a net loss of $2.2 million in 2023.
- GAAP EPS (Q4 2024): $1.03 per basic share, $0.93 per diluted share.
- Non-GAAP Adjusted EPS (Q4 2024): $0.67 per basic share, $0.61 per diluted share.
- Non-GAAP Adjusted EBITDA (Q4 2024): $2.8 million, compared to $1.3 million in Q4 2023.
- Full Year Non-GAAP Adjusted EBITDA (2024): $10.4 million, compared to $1.5 million in 2023.
- Backlog (End of 2024): $21.8 million, $5.8 million higher than at the end of 2023.
- Cash and Cash Equivalents (End of 2024): $7.1 million, with no debt.
- Working Capital (End of 2024): $23 million, up from $16.8 million at the end of 2023.
- Shareholders' Equity (End of 2024): $29.8 million, up from $21.3 million at the end of 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BK Technologies Corp (BKTI, Financial) reported a strong fourth quarter with revenue increasing by 9.9% to $17.9 million.
- The company achieved a significant increase in gross margin, reaching 41.2% in the fourth quarter.
- BK Technologies Corp (BKTI) exceeded its financial and operational targets for 2024, with full-year revenue of $76.6 million and a gross margin of 37.9%.
- The BKR 9000 product line is gaining momentum, contributing to a higher backlog of $21.8 million at the end of 2024.
- BK Technologies Corp (BKTI) reported its sixth consecutive quarter of profitability, with a non-GAAP adjusted EPS of $0.61 per diluted share in Q4 2024.
Negative Points
- The company faces uncertainty due to potential tariff increases, which could impact product costs and margins.
- Despite the strong performance, the macroeconomic environment remains uncertain, which could affect future sales cycles.
- A significant portion of the backlog does not include recent price increases, potentially impacting near-term profitability.
- The federal government budget delays have affected the timing of order intake, particularly from federal customers.
- The SaaS business, while promising, is still small and not yet a significant contributor to overall profitability.
