So the evening still has one more surprise in store. I'm staying invested.
Frequency Electronics Inc. (NASDAQ:FEIM) reported first-quarter results that significantly exceeded analysts' expectations. The company’s stock rose 24.8% in after-hours trading on Thursday following the announcement.
The company reported adjusted earnings per share of $0.41, beating the analyst consensus of $0.29 by $0.12. Revenue reached a record $23.5 million, exceeding the estimate of $19.25 million. This represents a 70% increase from the $13.8 million reported in the same quarter last year. This strong business performance also represents a sequential increase of 52% compared with the previous quarter.
Frequency Electronics demonstrated significant operating leverage, with the gross margin rising to approximately 46% and the operating margin to over 22%. The company generated $3.0 million in operating cash flow during the quarter, compared with a cash outflow from operating activities of $1.2 million in the same period last year.
“I am very pleased to report first-quarter revenue of $23.5 million, an all-time high for FEI, representing a 70% increase year-over-year and a 52% increase sequentially,” said Tom McClelland, President and CEO. "This performance reinforces our confidence that we will meet or exceed our projected annual revenue of $150 million or more by fiscal year 2029, which ends on April 30, 2029."
The company’s funded backlog reached a record $129 million at the end of the first quarter, an increase of 82% from $71 million a year ago and 16% sequentially from $111 million as of April 30, 2026. Operating income totaled $4.2 million, compared to $0.6 million in the same quarter a year ago.
