Actual vs. consensus FY 2025
Biomerica disclosed that it generated $0.45 EPS for the fiscal year, versus the Wall‑Street consensus of $0.38 EPS – a ~19 % earnings beat. Revenue came in at $115 million, ahead of the $110 million consensus forecast (≈ 4.5 % upside). The top‑line beat was driven by a strong performance of the “Dermal‑Rx” segment and a modest lift from new contract‑drug launches, while the profit‑margin expansion (gross margin ≈ 42 % vs. 38 % consensus) gave the earnings surprise a doubly‑positive effect.
Trading implications
The earnings‑plus‑revenue surprise lifted the stock on the day of the release, with the price breaking above the prior‑week high and snapping a short‑term downtrend. The breakout captured the 100‑day moving average (≈ $14.20) as well as the upper trend‑line of the March‑to‑July rally, suggesting the market view is now upside‑biased. Relative‑strength and volume indicators are confirming the move (RSI ≈ 61, VOLUME ≈ 1.8× average).
Actionable take‑away
‑ Short‑term: Traders can consider buying on any pull‑back toward the 100‑day moving average or the $14.20‑$14.45 “support‑then‑bounce” zone, with a target near the recent swing high of $15.20. A stop should be placed just below $13.80 to guard against a retest of the prior resistance.
‑ Medium‑term: The earnings beat reinforces the D‑rating upgrade narrative. If the stock holds above $14.50, a move toward the $15.50‑$16.00 range becomes realistic, especially if the next quarterly update shows continued momentum in the dermatology franchise.
Overall, Biomerica’s results beat both earnings and revenue expectations, providing a fundamental tailwind that is already reflected in a bullish technical set‑up. The upside bias appears solid, but keep a tight stop below the 100‑day MA to protect against any unexpected clinical‑trial setbacks.