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Shares of CVD Equipment Corporation CVV have gained 11.1% since the company reported its earnings for the quarter ended Sept. 30, 2024. This compares to the S&P 500 index’s -0.7% change over the same time frame. Over the past month, the stock moved -5% versus the S&P 500’s 2.1% change.
In the third quarter of 2024, CVD Equipment reported revenues of $8.2 million, a 31.4% increase year over year. The increase in revenues was primarily driven by higher revenues from the CVD Equipment, SDC and CVD Materials segments.
Gross profit improved to $1.8 million, up 14.8% from $1.6 million in the prior-year quarter. However, gross margin declined to 22.4% from 25.6%, largely due to a $1 million inventory charge related to adjustments in its PVT150 systems. The company achieved a net income of $0.2 million, or $0.03 per diluted share, against a net loss of $0.8 million, or $0.11 per share, a year earlier.
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Other Key Business Metrics
CVD Equipment's backlog stood at $19.8 million as of Sept. 30, 2024, a decrease from $24 million on June 30, 2024, and an increase from $18.4 million on Dec. 31, 2023. Total bookings in the quarter totaled $4.1 million compared with the prior-year quarter’s $4.4 million.
Segment performance showed growth in revenues. CVD Equipment segment’s revenues rose 18.5% to $5.7 million, accounting for 69.3% of total revenues, boosted by aerospace contract activities. SDC segment’s revenues grew 27.5% year over year to $2 million, accounting for 22.6% of total revenues, due to heightened demand for gas delivery systems.
CVD Materials segment’s revenues surged 634.4% year over year to $0.7 million, accounting for 8.1% of total revenues, driven by the final sales to an aerospace company and MesoScribe ceased operations as of Sept. 30, 2024.
CVD Equipment Corporation Price, Consensus and EPS Surprise
CVD Equipment Corporation price-consensus-eps-surprise-chart | CVD Equipment Corporation Quote
Management Commentary
CEO Emmanuel Lakios emphasized the strategic importance of the first shipment of its PVT200 system for 200mm silicon carbide (SiC) wafer production, a transition reflecting industry trends toward larger wafers amid declining 150mm wafer prices. Management also highlighted ongoing growth in the aerospace and defense markets, supported by a $3.5 million order for CVI/CVI3500 systems in early November 2024. Despite challenges such as inventory adjustments and market shifts, the company remains focused on improving profitability and customer engagement.