Coda Octopus Expected To Post Revenue Growth In Q1, But Retail’s Not Sure Yet

Shares of Coda Octopus Group Inc. (CODA) will be in focus on Monday as the company is scheduled to post its first-quarter results after the regular trading session.

The engineering services company is expected to post a surge in revenue in Q1, but its earnings per share (EPS) is expected to fall.

Wall Street expects Coda’s EPS to come in at $0.03 in Q1, halving from $0.06 during the same period a year earlier.

As for the topline, Coda is expected to report revenue of $5.1 million, compared to the year-ago period’s $4.46 million.

The New York-based company provides engineering services and solutions primarily to prime U.S. defense contractors. It has two divisions – underwater technology solutions and a discrete engineering business.

The underwater technology solutions division includes a portfolio of sonar, diving and diving communications technology. The company says it offers the world’s only 4D, 5D, and 6D sonar capability, allowing users to image moving objects in zero visibility conditions underwater.

The discrete engineering business supplies sub-assemblies for mission-critical defense programs in partnership with contractors and the Department of Defense.

In January, analysts at Alliance Global Partners trimmed their price target for the Coda stock to $10 from $11, noting that the company’s Q4 results were “underwhelming,” according to The Fly. This implies an upside of over 51% from Friday’s closing price.

The brokerage expects U.S. budget challenges to result in a weakness in overall demand for the first half of 2025, impacting Coda’s topline.

Retail sentiment on Stocktwits showed caution among investors, hovering in the ‘neutral’ territory at the time of writing.

Coda’s stock has fallen over 15% year-to-date.

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