Draganfly (NASDAQ:DPRO) Posts Quarterly Earnings Results, Misses Expectations By $0.13 EPS

Draganfly (NASDAQ:DPRO - Get Free Report) issued its earnings results on Monday, August 10th. The company reported ($0.24) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.13), Zacks reports. The firm had revenue of $1.93 million during the quarter, compared to analysts' expectations of $2.56 million. Draganfly had a negative net margin of 355.34% and a negative return on equity of 26.61%. The firm's revenue for the quarter was up 26.0% compared to the same quarter last year.

Here are the key takeaways from Draganfly's conference call:

• Record Q2 revenue reached CAD 2.664 million, up 26% year over year, with product sales exceeding CAD 2.5 million and gross profit of approximately CAD 533,000.
• The company’s comprehensive loss widened to CAD 11.8 million from CAD 4.7 million a year earlier, while adjusted gross margin declined to 21.7% from 24.3% amid higher operating, R&D, personnel, and professional costs.
• Draganfly highlighted a pipeline of more than 50 campuses following its exclusive IACLEA agreement and said its Small and Rural Association partnership could address roughly 80% of U.S. police forces, although the rollout will be phased through pilot programs.
• The DEVCOM counter-drone contract, new Special Forces selections for the Flex FPV, and the Skip Dynamix acquisition strengthen the company’s defense portfolio; management estimates the counter-UAS opportunity could represent hundreds of millions of Canadian dollars over several years.
• Draganfly ended the quarter with CAD 131.9 million in cash and minimal debt, while management expects significant Canadian defense procurement and additional U.S. manufacturing capacity to support a future revenue ramp, though it acknowledged the company is several quarters behind some industry peers.

Draganfly Price Performance

Shares of DPRO stock opened at $5.42 on Tuesday. The firm has a market cap of $186.32 million, a P/E ratio of -6.95 and a beta of 2.73. Draganfly has a 1-year low of $3.78 and a 1-year high of $14.40. The firm has a fifty day moving average of $4.61 and a two-hundred day moving average of $5.60.

Hedge Funds Weigh In On Draganfly

Several large investors have recently modified their holdings of the stock. Jane Street Group LLC acquired a new position in Draganfly in the second quarter worth about $35,000. IFP Advisors Inc acquired a new stake in Draganfly during the third quarter valued at approximately $39,000. Royal Bank of Canada raised its stake in Draganfly by 478.4% during the fourth quarter. Royal Bank of Canada now owns 8,647 shares of the company's stock valued at $60,000 after buying an additional 7,152 shares in the last quarter. XTX Topco Ltd bought a new position in Draganfly during the 2nd quarter worth approximately $65,000. Finally, Wexford Capital LP acquired a new position in shares of Draganfly in the 3rd quarter worth approximately $67,000. Institutional investors own 10.39% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. LADENBURG THALM/SH SH cut their price target on Draganfly from $12.75 to $11.50 and set a "buy" rating for the company in a report on Thursday, August 13th. Wall Street Zen lowered Draganfly from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 15th. Northland Securities set a $13.00 target price on Draganfly in a research report on Tuesday, May 12th. HC Wainwright initiated coverage on Draganfly in a research note on Friday, May 29th. They issued a "buy" rating and a $14.00 price target on the stock. Finally, Needham & Company LLC lowered their price target on Draganfly from $12.00 to $8.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Buy" and an average target price of $11.62.

About Draganfly

Draganfly Inc NASDAQ: DPRO is a Canada-based developer and manufacturer of unmanned aerial systems (UAS) and related software solutions for commercial, government and academic applications. Headquartered in Saskatoon, Saskatchewan, the company specializes in designing lightweight, modular drones that integrate advanced sensor payloads—including high-resolution imaging, multispectral and thermal cameras—to gather aerial data across a range of industries.

The company's core offerings include turnkey UAS platforms, data-capture payloads and proprietary analytics software that enable clients to perform precision agriculture monitoring, land surveying, infrastructure inspection and environmental assessment.

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