Frequency Electronics (NASDAQ:FEIM) Issues Quarterly Earnings Results, Misses Expectations By $0.14 EPS

Frequency Electronics (NASDAQ:FEIM) issued its quarterly earnings data on Wednesday. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.14), FiscalAI reports. Frequency Electronics had a net margin of 10.78% and a return on equity of 12.88%. The company had revenue of $16.89 million for the quarter, compared to analysts’ expectations of $19.06 million.

Here are the key takeaways from Frequency Electronics’ conference call:

• Announced two contracts valued at approximately $45 million — one in FEI’s traditional satellite programs and one in the proliferated-satellite market — signaling wins in both legacy and next-generation markets.
• Fully funded backlog reached a record of approximately $83 million, and management expects additional awards that could push backlog past $100 million in the near future.
• Quarterly revenue was $16.9 million (flat sequentially but down YoY) and operating income fell to about $1.3 million, with gross margins pressured by program mix and increased non-recurring engineering work.
• Operating expenses rose (including roughly $500k of non-recurring costs tied to the Colorado facility) and R&D increased to ~10% of revenue, which management says should normalize and enable operating leverage as production scales.
• Balance sheet remains strong — roughly $32 million working capital, debt-free, and over $11 million of cash collected since Feb 1 — supporting continued R&D and program execution.

Frequency Electronics Stock Up 1.8%

Shares of FEIM stock traded up $0.84 during mid-day trading on Friday, reaching $47.50. 40,871 shares of the company’s stock traded hands, compared to its average volume of 186,570. Frequency Electronics has a 12 month low of $14.41 and a 12 month high of $61.47. The company has a market cap of $464.59 million, a P/E ratio of 63.25 and a beta of 0.35. The company’s 50-day moving average price is $52.89 and its 200-day moving average price is $41.51.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Invesco Ltd. purchased a new position in Frequency Electronics during the 4th quarter valued at about $9,446,000. NewEdge Advisors LLC purchased a new stake in Frequency Electronics in the fourth quarter worth about $52,000. XTX Topco Ltd grew its holdings in Frequency Electronics by 200.4% in the fourth quarter. XTX Topco Ltd now owns 18,941 shares of the communications equipment provider’s stock worth $1,020,000 after purchasing an additional 12,636 shares during the period. Susquehanna Portfolio Strategies LLC bought a new position in shares of Frequency Electronics during the fourth quarter valued at approximately $248,000. Finally, Boothbay Fund Management LLC bought a new position in shares of Frequency Electronics during the fourth quarter valued at approximately $616,000. 58.60% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on FEIM shares. Wall Street Zen lowered shares of Frequency Electronics from a “hold” rating to a “sell” rating in a research note on Sunday, December 14th. Weiss Ratings reissued a “buy (b+)” rating on shares of Frequency Electronics in a research note on Monday, December 29th. Craig Hallum restated a “buy” rating and issued a $46.00 price objective on shares of Frequency Electronics in a report on Friday, December 12th. Finally, Loop Capital set a $42.00 price objective on Frequency Electronics in a research report on Tuesday, December 16th. Two analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $43.67.

About Frequency Electronics

Frequency Electronics, Inc (NASDAQ:FEIM) is a U.S.-based designer and manufacturer of precision frequency control products and timing solutions. The company’s portfolio includes oven-controlled crystal oscillators (OCXOs), atomic frequency standards such as rubidium oscillators, GPS-disciplined oscillators (GPSDOs), microwave synthesizers, and integrated timing subsystems. These products are used to provide stable and accurate frequency and time references for applications that demand high performance and reliability.

FEI serves a broad range of markets, including telecommunications, aerospace and defense, satellite and space systems, test and measurement equipment, and critical infrastructure.