Frequency Electronics' Q4 revenue hits 25-year high of $20 mln

Overview

• Frequency Electronics reports fiscal Q4 revenue of $20 mln, highest in 25 years

• Pretax profit beats analyst's expectation, per LSEG data

• Company sees medium to long-term growth potential despite short-term unpredictability

Outlook

• Co sees growth potential in quantum sensing market, investing in R&D for new products

• Anticipates unpredictable short-term impact from space architecture changes

• Company investing in quantum sensor applications, per CEO Tom McClelland

• Cautions against expecting near-term replication of recent performance

Result Drivers

• REVENUE GROWTH - Fourth quarter revenue reached $20 million, highest in 25 years, driven by strong execution on several programs, per CEO Tom McClelland

• SATELLITE PAYLOADS - Revenue from satellite payloads increased to 60% of total revenue, up from 44% in the prior year

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Frequency Electronics Inc is $27.00, about 15.8% above its July 9 closing price of $22.75

Press Release: ID:nGNX3RKlDh