Among the key news on Australian stocks, Electro Optic Systems Holdings Limited (AU:EOS) gained over 6% today after the company’s revenue soared 92% year-over-year to AU$142.6 million in the first half of 2024. The growth was driven by expansion across all business sectors, including its existing contracts.
Electro Optic Systems specializes in developing advanced technology products and services primarily for the global defence sector.
Highlights from EOS’ First Half Results
According to the company’s announcement, the revenue growth was supported by the accelerated production and delivery of Remote Weapons Systems (RWS) under an existing contract in the Middle East, among other factors.
On the flip side, the company cautioned investors not to expect similar strong growth in the second half due to the volatile nature of its business.
By the end of the first half, EOS reported a cash balance of AU$55.2 million. While this is down from the cash balance of AU$72.4 million at the end of the March quarter, it includes the repayment of $20.5 million in debt announced earlier in April. The company also worked to improve its financial position by reducing its bank guarantee collateral by AU$8.3 million.
What Is the Forecast for EOS Shares?
Year-to-date, EOS shares have gained 66% in trading, driven by its robust operating performance in 2024. In April, the company announced a 127% increase in first-quarter revenue, reaching $77.3 million compared to Q1 2023. Moving forward, analysts continue to hold a bullish stance on EOS stock.
According to TipRanks’ analyst rating consensus, EOS stock has received a Strong Buy rating, backed by unanimous Buy recommendations from three analysts. The Electro Optic Systems share price forecast is AU$1.89, which is 10% higher than the current share price.
