Sonoma Pharmaceuticals shares rise following annual report release

Shares of Sonoma Pharmaceuticals, a manufacturer of products for humans and animals, rose nearly 20% in after-hours trading on June 17. The company published its annual report for the fiscal year ending March 31, 2024, just before the close of trading.

Details

During regular trading on Nasdaq on Monday, June 17, Sonoma Pharmaceuticals’ shares fell by 5.76% to $0.17. However, just before the end of the trading session, the company released its annual report for the fiscal year 2024. In after-hours trading, the stock price went up, resulting in a 19.69% increase to $0.20 per share. On pre-market trading on June 18, it also saw a rise of more than 14%.

Since the beginning of the year, the stock is down by 6.4%, and over the last 12 months, it has dropped nearly 87%.

Company’s report

Sonoma’s revenue for the fiscal year 2024 decreased by 4.7% to $12.7 million. The company explained that this decline was due to a one-time event. However, sales revenue grew by 3% over the fiscal year. Gross profit also increased, from 34% of revenue in the fiscal year 2023 to 37% in the fiscal year 2024.

Sonoma manufactures products for humans and animals based on stabilized hypochlorous acid. Its portfolio includes products for wound care for diabetic foot ulcers, pressure ulcers, scar gel, eyelid cleanser, hydrogel for sunburns, etc. Some products are prescription-only, while others are available over-the-counter.

Sales in the U.S. declined in the fiscal year 2024 due to fluctuations in animal care product sales, according to the company’s report submitted to the U.S. Securities and Exchange Commission (SEC). At the same time, sales in Europe increased, partly due to growing demand for wound care products in Poland “in connection with recent global events”.

In its report to the SEC, Sonoma reminds that Nasdaq has given it until September 16 to meet the listing requirement. It’s necessary that the company’s shares must trade at no less than $1. Otherwise, it may face delisting.

Analyst insights

One analyst is tracking the company’s performance, according to MarketWatch. Their recommendation is to buy the shares, with a target price of $3.25. This is nearly 1800% above Sonoma’s closing price on June 17.