AstroNova Stock Falls After Slashing Full-Year Guidance
The printing technology firm reported an 11% drop in Q2 revenue, citing soft demand and product delays as it revises its outlook.
AstroNova (NASDAQ: ALOT) saw its shares decline after the company reported a challenging second quarter, marked by an 11% year-over-year revenue decrease and a significant downward revision of its full-year financial guidance.
The specialized printing technology company announced Q2 revenue of $36.1 million, a substantial drop from the $40.5 million reported in the same period last year. The disappointing results prompted a net loss of $1.2 million, or $(0.16) per share. In response to the headwinds, AstroNova slashed its fiscal 2026 revenue forecast to a range of $149 million to $154 million, down from the previous guidance of $160 million to $165 million. The company also lowered its adjusted EBITDA margin expectations.
The downturn was broad-based, affecting both of the company's primary business segments. The Product ID division saw revenue fall by 8.9%, while the Aerospace unit experienced a steeper , driven by a 20% reduction in hardware sales.
In its , management attributed the poor performance to longer sales cycles for high-volume printers, delays in new product shipments, and overall softer demand. Gross profit margin compressed to 32.2% from 35.3% in the prior year, a direct result of the lower sales volume.
Now operating under new leadership, AstroNova is implementing a strategic reset focused on improving operational execution and customer centricity. According to its , the company is also pursuing cost-reduction initiatives to stabilize its financial position. Despite the current challenges, management expressed expectations for modest revenue growth and margin improvement in the second half of the fiscal year as these new strategies take effect. Investors will be closely watching for signs that this planned turnaround can gain traction in the coming quarters.