DMC Global slides after Q2 miss
23/07/2021 13:54
** DMC Global Inc BOOM.O shares down ~15% at ~$40, lowest
since Nov, on light premarket volume after qtrly report
disappoints
** Co which serves energy, industrial and infrastructure
markets posts Q2 sales and profits below Street consensus, per
Refinitiv data urn:newsml:reuters.com:*:nGNX9C1Qr8 urn:newsml:reuters.com:*:nL8N2OY736
** Forecasts Q3 rev of $70-$73 mln vs Street view of $73.2
mln
** Expects gross margin of 24%-26%, down from 26% in Q2,
saying potential decline relates to expected increase in North
American sales vs higher margin international sales at its
DynaEnergetics unit, as well as inflationary pressures that will
likely offset pricing increases
** Adds that gross margin at its NobelClad business also
expected to decline due to less favorable project mix
** Stifel cuts its PT from $64 to $59
** 3 of 5 analysts rate BOOM "strong buy", 2 have "hold";
median PT is $57 - Refinitiv
** YTD, stock up 9% but well off $70 peak hit in Mar
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))