Precision Optics (NASDAQ:POCI) Issues Earnings Results

Precision Optics (NASDAQ:POCI) issued its quarterly earnings results on Monday. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.05, FiscalAI reports. The firm had revenue of $8.77 million during the quarter, compared to analyst estimates of $7.10 million. Precision Optics had a negative return on equity of 26.98% and a negative net margin of 11.51%.

Here are the key takeaways from Precision Optics’ conference call:

• Record fiscal 2026 results included fourth-quarter revenue of $8.8 million, up 42% year over year, 25.3% gross margin, and positive adjusted EBITDA of $355,000. Full-year revenue rose 65% to $31.5 million, exceeding management’s guidance.
• Manufacturing efficiency improved substantially, with satellite-program yields reaching 99% and ophthalmic-line yields rising to 94%. Management said these improvements, along with better utilization, should support improved profitability even with roughly flat fiscal 2027 revenue.
• Fiscal 2027 guidance calls for revenue of $30 million to $33 million and an adjusted EBITDA loss of $1.2 million to $1.7 million. The existing satellite customer is expected to reduce revenue by about 40% in the first quarter, with an additional decline in the second quarter before a potential recovery later in the year.
• A new satellite communications customer has placed two approximately $50,000 engineering orders, with production potentially beginning within 6–12 months. Management believes the opportunity could ultimately exceed the existing satellite program because it may involve higher-value assemblies and a similarly sized or larger constellation.
• The balance sheet strengthened materially following a March public offering, with $9.8 million in cash equivalents and approximately $1.3 million of bank debt at fiscal year-end. Management said it has no current plans to raise additional equity in fiscal 2027.

Precision Optics Trading Down 5.7%

NASDAQ POCI opened at $4.27 on Wednesday. The firm has a market cap of $46.71 million, a PE ratio of -9.28 and a beta of 0.32. Precision Optics has a 1-year low of $3.55 and a 1-year high of $6.15. The stock has a 50-day moving average of $4.36 and a 200-day moving average of $4.63. The company has a current ratio of 2.10, a quick ratio of 1.74 and a debt-to-equity ratio of 0.04.

Analyst Upgrades and Downgrades

Several research firms have commented on POCI. Wall Street Zen raised shares of Precision Optics to a “hold” rating in a research note on Saturday, August 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Precision Optics in a research note on Wednesday, September 2nd. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Precision Optics presently has a consensus rating of “Sell”.

About Precision Optics

Precision Optics Corporation, Inc (NASDAQ: POCI) designs and manufactures advanced optical and imaging systems, primarily for the medical device market. The company develops products used in minimally invasive surgery, including endoscopes, surgical cameras, and specialized visualization systems that help physicians view internal anatomy during diagnostic and therapeutic procedures.

Its product portfolio includes reusable and single-use endoscopes, three-dimensional imaging systems, fluorescence imaging technologies, and custom optical components and assemblies.