RF Industries Q4 net sales rise 23%

Overview

• Interconnect products maker's Q4 net sales rose 23% yr/yr to $22.7 mln

• Gross profit margin improved to 37% from 31% yr/yr

• Adjusted EPS for Q4 was $0.20

Outlook

• Company plans to diversify end markets and launch new products in fiscal 2026

• Company did not provide specific financial guidance for fiscal 2026

Result Drivers

• STRATEGIC TRANSFORMATION - Co attributed Q4 sales growth to strategic transformation and diverse contributions across its portfolio

• COST CONTROL - Co said controlling fixed costs contributed to increased profitability in Q4

• INVENTORY MANAGEMENT - Inventory decreased 7% yr/yr due to improvements in procurement and supply chain processes

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 RF Industries Ltd is $9.25, about 38.9% above its January 13 closing price of $6.66

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nACSW1Gkza

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