Kornit Digital (KRNT) delivered solid second-quarter results. Revenue in the quarter increased 118% year-over-year to $81.7 million, beating consensus estimates of $77.44 million.
The company bounced back to profitability with non-GAAP net income increasing to $10.5 million compared to a net loss of $1.3 million delivered in the same quarter last year. Diluted earnings per share came in line with analyst expectations at $0.22 a share, an improvement from a net loss of $0.03 a share delivered in the same quarter last year.
According to CFO Alon Rozner, the strong financial results can be attributed to continued momentum with the company’s global strategic accounts, among other factors. Gross margins expanded thanks to a favorable product mix and the profitability of the Services business. (See Kornit stock charts on TipRanks)
For the third quarter, Kornit is projecting revenue in the range of $88 million – $92 million. Non-GAAP operating income is expected to range between 12% and 14% of revenue.
“We are more confident than ever in our outlook for the remainder of this year and into next year, and believe we are well on our way to becoming the operating system for on demand sustainable fashion and a $1 billion revenue company in 2026,” said CEO Ronen Samuel.
Kornit has confirmed the acquisition of Voxel8. The purchase is expected to enhance the execution of Kornit’s 4.0 strategy that seeks to digitize on-demand textile production.
Last month, Craig-Hallum analyst Greg Palm reiterated a Buy rating on the stock and raised the price target to $140 from $105, implying 7.78% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 5 Buys. The average Kornit price target of $135.40 implies 4.23% upside potential to current levels.
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