Frequency Electronics (FEIM) reported its fiscal 2026 Q1 earnings on Sep 15th, 2025, with the company experiencing a significant drop in both revenue and net income. The stock price has seen mixed performance, with a slight gain on the day but declines over the week and month.
Revenue
Total revenue for
decreased by 8.4% to $13.81 million in 2026 Q1, down from $15.08 million in 2025 Q1. FEI-NY generated $10.35 million in revenue, while FEI-Zyfer contributed $3.72 million. After accounting for intersegment revenues of $260,000, the consolidated revenue for the quarter stood at $13.81 million.
Earnings/Net Income
Earnings per share (EPS) fell 72.0% to $0.07 in 2026 Q1 from $0.25 in 2025 Q1. The company's net income also dropped sharply to $634,000 in the same period, a 73.9% decrease from the $2.43 million reported in 2025 Q1. This marked a significant decline in profitability for the company.
Price Action
The stock price of Frequency Electronics edged up 0.88% during the latest trading day but declined 14.20% during the most recent full trading week and 11.26% month-to-date, reflecting mixed investor sentiment around the earnings report.
Post Earnings Price Action Review
Following the earnings report, Frequency Electronics' CEO expressed cautious optimism regarding the company's performance in Q1 2026, highlighting progress in key business areas while acknowledging ongoing challenges. He emphasized strong revenue growth driven by increased demand in the defense and aerospace sectors, which remains a core strength for the company. The CEO also noted strategic investments in advanced technologies to enhance market positioning and long-term competitiveness. Despite these positives, he acknowledged the impact of supply chain constraints on production timelines and gross margins. Looking ahead, the CEO reiterated confidence in the company’s ability to adapt and innovate while maintaining a disciplined approach to cost management and operational efficiency.
Guidance
The CEO outlined forward-looking expectations, stating that the company anticipates revenue to remain stable in the near term, with a focus on profitability through operational improvements. While no specific revenue or EPS targets were provided, the CEO expressed confidence in maintaining positive earnings trends, supported by ongoing customer demand in core markets. Capital expenditures are expected to align with current operational needs and long-term strategic goals. The company remains committed to achieving sustainable growth while managing risks associated with macroeconomic uncertainties.
Additional News
Recent developments in the financial and business sectors include the Chinese government's commitment to resolving TikTok-related issues with the U.S. in a framework that protects enterprise interests. Additionally, the automotive industry has seen new initiatives aimed at improving supplier payment terms, with several major automakers committing to a 60-day payment cycle. Another notable trend is the increasing focus on AI-related regulatory developments, particularly in the context of AI deepfake threats affecting political figures in Malaysia.
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