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MIAMI - On Tuesday, EnviroStar Inc. (NYSE:EVI) reported record first-quarter revenue that slightly missed analyst expectations, while earnings fell short of estimates amid increased investments in technology and integration of recent acquisitions.
The commercial laundry equipment distributor’s shares rose 1.73% in pre-market trading after the result.
The company reported Q1 adjusted earnings of $0.11 per share, missing the analyst consensus of $0.15, as it accelerated spending on modernization and optimization initiatives. Revenue climbed 16% YoY to a record $108.27 million, just below the consensus estimate of $109.54 million. Gross profit increased 17% to a record $33.9 million, representing a record gross margin of 31.3%.
"Our record results this quarter highlight the success of our sales organization and our ongoing progress in capturing market share across key regions," said Henry M. Nahmad, Chairman and CEO. "We believe that this performance underscores the strength of our strategy and the capabilities we are developing across our platform."
The company’s operating income fell to $3.6 million from $5.0 million in the year-ago period, while net income declined to $1.8 million from $3.2 million. Adjusted EBITDA was $6.8 million, representing 6.2% of revenue, compared to $7.6 million or 8.1% of revenue in the prior-year period.
Management attributed the profitability decline to investments in long-term initiatives, including technology modernization, expansion of service capabilities, and integration of recently acquired businesses. The company also incurred expenses related to its participation in the industry’s largest North American exposition held during the quarter.
EVI has maintained its focus on its buy-and-build growth strategy, having completed four acquisitions since the first quarter of fiscal 2025, including what it described as the largest in its history. The company declared a $5.0 million special cash dividend during the quarter, reflecting management’s confidence in its financial strength and long-term outlook.
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