Frequency Electronics Reports Record Revenue, Drives Stock Surge
On September 10, Frequency Electronics (NASDAQ:FEIM) reported record first-quarter revenue of $23.5 million for fiscal 2027, marking a significant increase of 70% year-over-year and 52% sequentially. The strong performance has bolstered management's confidence in achieving or surpassing its target of at least $150 million in annual revenue by fiscal 2029. The company also reported an impressive funded backlog of $129 million, up 82% year-over-year and 16% sequentially. This growth has led to improved profitability with a gross margin expansion to approximately 46% and operating margins exceeding 22%. The results exceeded expectations, causing the stock price to rise more than 24% in after-hours trading. Despite these positive developments, challenges remain including production ramp-up difficulties and limited traction with new defense technology companies. Additionally, while hedge fund interest has increased, short interest remains high at 11.39%, indicating some investor skepticism.
Tickers: $FEIM
Topics: backlog_increase profitability_improvement revenue_growth