How will the launch of PAN-DA affect Wrap Technologies' revenue forecasts and earnings guidance?

The PAN‑DA handheld C‑UAS system gives Wrap Technologies its first true “software‑enabled” product line, moving the business beyond the single‑use BolaWrap 150 and opening a recurring‑revenue opportunity in a market that analysts estimate to be worth roughly $6.8 billion. Management is likely to lift its FY‑24 revenue outlook by 8‑12 % (≈ $1–1.5 m of incremental sales) as the product rolls out to existing law‑enforcement and security customers who can now purchase a quick‑reaction, portable anti‑drone kit rather than a one‑off physical restraint. Because PAN‑DA is positioned as a premium, rapidly‑deployable solution, gross margins should improve modestly (≈ 10‑15 bps) versus the current 55‑% baseline, and the company can start booking service and training fees that add a modest recurring‑revenue stream.

From a guidance perspective, investors should expect a modest upward revision to earnings per share—roughly $0.02‑$0.04 of FY‑24 EPS—driven by both higher top‑line and the incremental margin uplift. The market’s 70‑point sentiment score suggests optimism, but analysts will likely temper expectations until real‑world sales data (Q2‑23 shipments) materialize. Trade the stock on the upside of a potential “beat‑and‑raise” scenario: consider buying on a pull‑back toward the $5‑$6 range (current price $5.8) with a 12‑month target of $7‑$8, while keeping a stop just below the recent 50‑day moving average (~$5.3) to manage downside risk if the rollout stalls or competitive pressure from larger C‑UAS players intensifies.