Frequency Electronics (NASDAQ:FEIM) Issues Quarterly Earnings Results

Frequency Electronics (NASDAQ:FEIM) issued its quarterly earnings results on Wednesday. The communications equipment provider reported ($0.50) EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.76), FiscalAI reports. The business had revenue of $15.40 million for the quarter, compared to analysts’ expectations of $18.57 million. Frequency Electronics had a negative net margin of 1.43% and a negative return on equity of 1.55%.

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

• Frequency Electronics said fiscal 2026 was a “year of digestion,” but management now expects to return to growth in fiscal 2027, with the potential for multiple new quarterly revenue records.
• The company reported a record funded backlog of $111 million and said fiscal 2026 was the biggest bookings year in its history, providing strong visibility into future revenue.
• Management announced a three-year revenue target of at least $150 million by fiscal 2029, implying about 34% compound annual growth from fiscal 2026 levels.
• The company also introduced margin goals of at least 50% gross margin and 30% operating margin by fiscal 2029, driven by higher production scale, better mix, and operating leverage.
• Fiscal 2026 results were weighed down by non-recurring charges, including a $3.8 million inventory write-down tied to the FEI-Elcom restructuring and other one-time costs, while management said the business is refocusing on higher-growth space, defense, quantum sensing, and alternative PNT opportunities.

Frequency Electronics Stock Performance

Shares of NASDAQ:FEIM opened at $56.13 on Friday. The firm has a market capitalization of $552.32 million, a P/E ratio of -623.67 and a beta of 0.71. The stock has a 50 day moving average price of $65.71 and a 200-day moving average price of $56.77. Frequency Electronics has a 52-week low of $19.55 and a 52-week high of $80.00.

More Frequency Electronics News

Here are the key news stories impacting Frequency Electronics this week:

• Positive Sentiment: The company said funded backlog reached a record $111 million, up 34% sequentially and 59% year over year, which supports future revenue visibility. Article Title
• Positive Sentiment: Management reaffirmed a three-year target of at least $150 million in revenue and introduced long-term goals for 50% gross margin and 30% operating margin, signaling confidence in margin expansion. Article Title
• Neutral Sentiment: Investors are also digesting the Q4 earnings call and preview coverage as they look for more detail on the turnaround strategy and operating leverage. Article Title
• Negative Sentiment: FEIM’s fiscal Q4 results disappointed, with EPS of -$0.50 versus expectations for $0.26 and revenue of $15.4 million below estimates, pressuring the stock. Article Title
• Negative Sentiment: Pre-market coverage highlighted FEIM among stocks moving lower after the weak report, reinforcing the market’s negative reaction to the miss. Article Title

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Freedom Capital upgraded Frequency Electronics from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 5th. Wall Street Zen upgraded Frequency Electronics from a “strong sell” rating to a “sell” rating in a research report on Saturday, July 4th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Frequency Electronics in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Frequency Electronics currently has a consensus rating of “Buy” and a consensus price target of $43.67.

Institutional Trading of Frequency Electronics

A number of hedge funds have recently made changes to their positions in the stock. Kestra Advisory Services LLC bought a new position in shares of Frequency Electronics in the fourth quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Frequency Electronics in the 3rd quarter worth $25,000. State of Wyoming purchased a new stake in shares of Frequency Electronics during the 4th quarter valued at about $49,000. Wexford Capital LP purchased a new position in shares of Frequency Electronics during the 3rd quarter worth $32,000. Finally, NewEdge Advisors LLC purchased a new position in Frequency Electronics during the fourth quarter valued at $52,000. 58.60% of the stock is owned by institutional investors.

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.