Optex Systems (NASDAQ:OPXS) Announces Earnings Results

Optex Systems (NASDAQ:OPXS) issued its quarterly earnings results on Wednesday. The company reported $0.03 earnings per share for the quarter, FiscalAI reports. Optex Systems had a net margin of 10.75% and a return on equity of 22.54%. The company had revenue of $9.15 million for the quarter.

Here are the key takeaways from Optex Systems’ conference call:

• Revenue rose 11.6% YoY to $9.1M, new orders increased 31.7% to $7.9M, and backlog is approximately $37.9M, driven largely by Optex‑Richardson demand (XM30 and periscopes).
• Profitability compressed as gross margin fell to 22.9% and operating income dropped to $0.1M (from $0.9M) due to higher G&A (including leadership transition costs) and legacy low‑margin contracts.
• The board authorized a new share repurchase program of up to $10M while planning approximately $2.4M in capital investments; the company ended the quarter with $5.8M cash and stable working capital.
• The company increased contract loss reserves to $0.2M (driven by applied optics day window and a final legacy IDIQ award) and AOC revenue declined 20.1%, though management expects margins to improve as loss contracts conclude.

Optex Systems Stock Performance

OPXS stock traded up $0.20 during trading on Friday, reaching $14.49. The company had a trading volume of 21,330 shares, compared to its average volume of 62,031. The firm has a 50-day simple moving average of $14.50 and a 200-day simple moving average of $13.82. Optex Systems has a twelve month low of $5.36 and a twelve month high of $17.76. The company has a market cap of $100.55 million, a price-to-earnings ratio of 21.82 and a beta of 0.65.

Insider Activity

In related news, Director Danny Robert Schoening sold 34,147 shares of the business’s stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $13.87, for a total value of $473,618.89. Following the completion of the transaction, the director directly owned 873,161 shares in the company, valued at $12,110,743.07. The trade was a 3.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Over the last ninety days, insiders sold 110,578 shares of company stock valued at $1,510,898. Insiders own 27.70% of the company’s stock.

Institutional Investors Weigh In On Optex Systems

A number of hedge funds have recently modified their holdings of the company. LSV Asset Management acquired a new position in Optex Systems in the second quarter valued at about $63,000. Financial Advocates Investment Management increased its holdings in Optex Systems by 9.8% in the second quarter. Financial Advocates Investment Management now owns 11,339 shares of the company’s stock valued at $130,000 after buying an additional 1,012 shares during the last quarter. Marshall Wace LLP purchased a new stake in shares of Optex Systems during the 2nd quarter worth approximately $604,000. Archon Capital Management LLC purchased a new position in Optex Systems during the 2nd quarter worth approximately $332,000. Finally, Raymond James Financial Inc. purchased a new stake in shares of Optex Systems in the second quarter valued at about $30,000. Hedge funds and other institutional investors own 19.07% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Wall Street Zen cut Optex Systems from a “buy” rating to a “hold” rating in a report on Saturday, December 20th. Weiss Ratings raised Optex Systems from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, January 30th. One investment analyst has rated the stock with a Buy rating, According to MarketBeat.com, the company currently has a consensus rating of “Buy”.

About Optex Systems

Optex Systems Holdings, Inc (NASDAQ: OPXS) is a technology company specializing in infrared sensing systems for defense and homeland security applications. The company engineers, designs and manufactures electro-optical and infrared (EO/IR) payloads and sensors used across a range of surveillance and targeting platforms. Its core focus areas include mission-critical solutions for unmanned aerial vehicles (UAVs), rotary- and fixed-wing aircraft, and ground-based observation systems.

Optex Systems’ product portfolio consists of high-resolution thermal imaging cameras, infrared seekers, laser designators and multispectral platforms.