The 15-minute chart for Ultralife has recently triggered a KDJ Death Cross, accompanied by a Bearish Marubozu at 08/15/2025 09:45. This indicates a shift in momentum towards the downside, with a potential for further price decreases. Sellers currently dominate the market, and the bearish momentum is likely to persist.
Ultralife Corporation's (ULBI) stock has experienced a significant technical shift, with the 15-minute chart triggering a KDJ Death Cross and a bearish Marubozu on August 15, 2025, at 09:45. This indicates a shift in momentum towards the downside, with potential for further decreases in the stock price. Sellers currently dominate the market, and the bearish momentum is likely to persist.
The KDJ Death Cross, a bearish indicator, occurs when the KDJ line crosses below the signal line, suggesting a potential reversal in the stock's price trend. The bearish Marubozu, characterized by a long white candle, signals that the stock price has fallen significantly, with no buyers stepping in to reverse the trend. These indicators suggest that the stock price may continue to decline in the short term.
Ultralife's recent earnings report for Q2 2025 provides additional context. The company reported a 13.5% increase in revenue, driven by the inclusion of Electrochem and higher government defense sales within the battery business [1]. However, profitability declined significantly, with net income falling to $900,000 from $2.7 million in Q2 2024 [1]. The Communications Systems segment saw a substantial decline in sales, dropping by 57.2% to $2.7 million due to delayed purchase orders and the absence of prior year's large shipments [1].
The stock price of Ultralife fell 22.98% month-to-date post-earnings, with a 3-year buy strategy showing 0% CAGR and significant underperformance [2]. CEO Mike Manna expressed cautious optimism for H2 2025 recovery, citing new product development, debt prepayment, and anticipated demand in medical/oil & gas sectors [2]. However, the stock price experienced mixed performance around the earnings release. Shares rose 7.46% on the day of the report but fell 15.06% during the following week and 22.98% month-to-date as of the reporting date [3]. The company's earnings per share (EPS) dropped significantly to $0.05 in Q2 2025 from $0.18 in the same period last year, representing a 72.2% decline [3]. The company's net income also plummeted to $870,000 in Q2 2025 from $2.99 million in Q2 2024, a 70.9% drop [3].
Ultralife expects improved performance in the second half of 2025 and into 2026, citing a projected rebound in the Communications Systems business and early purchase orders for new battery programs as key drivers. Additionally, it anticipates increased demand from medical and oil & gas customers, sustained defense spending, and an expanding opportunity pipeline [3].
References:
[1] https://www.fool.com/earnings/call-transcripts/2025/08/07/ultralife-ulbi-q2-2025-earnings-call-transcript/
[2] MITrade. (2025). Ultralife Q2 Earnings Call Transcript. Retrieved from https://www.mitrade.com/insights/news/live-news/article-8-1021696-20250808
[3] https://www.ainvest.com/news/ultralife-2025-q2-earnings-misses-targets-net-income-slashes-70-9-2508/
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