XRF Scientific's (ASX:XRF) fiscal third quarter results were broadly in line with expectations, due to strong contributions in February and March offsetting a softer start to the quarter, according to a Tuesday note by Euroz Hartleys.
On Tuesday, the company reported revenue of AU$13.9 million for the quarter, down 9% from the prior corresponding period, while profit before tax rose 5% to AU$3.4 million.
Year-to-date, revenue stood at AU$42.4 million, down 3%, with profit before tax up 1% at AU$10.4 million.
Euroz Hartleys noted that February and March accounted for 76% of the quarter's profit, underpinned by continued strength across all divisions, particularly in the mining sector.
International expansion, product development, and mergers and acquisitions remain strategic priorities for the company, Euroz said, adding that strong sales that continue into April and stable trading conditions support its positive outlook for the company.
The broker said XRF's year-to-date results cover around 70% of its full-year profit before-tax forecast and reaffirmed its confidence in the company meeting its full-year estimates.
Euroz maintained XRF Scientific's buy rating and its price target of AU$2.12.
Shares of the company fell nearly 5% in recent Wednesday trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.