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Frequency Electronics' (FEIM) Q4 EPS Soars Y/Y, Revenues Rise
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Frequency Electronics, Inc. (FEIM - Free Report) reported earnings per share (EPS) of $0.28 for the fiscal fourth quarter ended Apr 30, 2024, significantly higher than the $0.03 EPS in the same period last year.
Quarterly revenues reached $15.6 million, up from $13 million in fourth-quarter fiscal 2023.
FEIM demonstrated a robust performance in the fourth quarter of fiscal 2024, with substantial improvements across key financial metrics. The quarterly revenue growth of 20% year over year underscores its ability to capitalize on market opportunities and enhance its operational efficiencies. An improved operating income reflects a strategic shift towards higher-margin projects and effective cost management.
Frequency Electronics, Inc. Price, Consensus and EPS Surprise
Revenues from satellite payloads constituted 44% of total revenues in fourth-quarter fiscal 2024, amounting to around $6.9 million, compared to roughly $5.1 million (39% of total revenues) in fourth-quarter fiscal 2023. The growth indicates increased demand and successful market penetration in this segment.
U.S. Government/DOD Customers
Revenues from non-space U.S. Government/DOD customers were around $7.9 million in the reported quarter, representing 51% of total revenues compared to roughly $7.3 million (56%) in the same period last year. This segment's steady contribution underscores FEI’s strong foothold in government contracts.
Commercial and Industrial Sales
Other commercial and industrial sales accounted for around $0.8 million (5% of total revenues) in fourth-quarter fiscal 2024, up from roughly $0.6 million (4%) in the year-ago quarter.
Gross Margin and Operating Income
FEIM's gross margin improved to $6.3 million in the reported quarter from $4 million in fourth-quarter fiscal 2023, driven by higher revenues and better cost control. The operating income rose to $2.5 million from $0.4 million, reflecting enhanced operational efficiency.
Backlog
The backlog at the end of fiscal 2024 was $78 million, a substantial increase from $57 million at the end of fiscal 2023. This represents the highest backlog in the company's history, underscoring a robust pipeline of future projects and sustained demand for FEIM’s products.
Balance Sheet Position (As of Apr 30, 2024)
Frequency Electronics’ cash and cash equivalents were $18.3 million, an increase from $12 million at the same time last year. Total assets of $85.6 million implies a rise from $74.5 million as of Apr 30, 2023.
Contract liabilities increased to $24 million from $18.6 million the previous year. Other current liabilities rose to $7.5 million from $6.9 million, while other long-term obligations slightly decreased to $8.1 million from $8.4 million.
Stockholders’ equity increased to $39.8 million from $32.9 million.
Operating Cash Flows
Net cash provided by operating activities for fiscal year 2024 was around $8.7 million, a substantial increase from $1.2 million in the previous fiscal year.
Full-Year Update
For the full fiscal year 2024, EPS was $0.59 against a loss of $0.59 in fiscal year 2023. Annual revenues for fiscal 2024 were $55.3 million, marking a 35.6% increase from $40.8 million in fiscal 2023.
Satellite payloads contributed $23.2 million, or 42% of total revenues, up from $17.9 million (44%) in fiscal 2023. Revenues from U.S. Government/DOD Customers were $29 million (52% of total revenues), compared to $20.3 million (50%) in fiscal 2023. Other commercial and industrial sales reached $3.1 million (6% of total revenues), increasing from $2.6 million (6%) in the previous fiscal year.
Management Guidance
The company anticipates continued growth in new business during the fiscal year ending Apr 30, 2025. Management remains committed to achieving sustained profitability and strong cash generation. The strategic focus will be on maintaining high operational standards, cost efficiency, and leveraging market opportunities to drive revenue growth.
Other Developments
Special Cash Dividend
On Jul 22, 2024, FEIM declared a special cash dividend of $1.00 per share, payable on Aug 29, 2024, to stockholders of record as of Aug 8, 2024. This dividend, totaling approximately $9.4 million, reflects the company's strong cash position and commitment to returning value to shareholders.
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Frequency Electronics' (FEIM) Q4 EPS Soars Y/Y, Revenues Rise
Frequency Electronics, Inc. (FEIM - Free Report) reported earnings per share (EPS) of $0.28 for the fiscal fourth quarter ended Apr 30, 2024, significantly higher than the $0.03 EPS in the same period last year.
Quarterly revenues reached $15.6 million, up from $13 million in fourth-quarter fiscal 2023.
FEIM demonstrated a robust performance in the fourth quarter of fiscal 2024, with substantial improvements across key financial metrics. The quarterly revenue growth of 20% year over year underscores its ability to capitalize on market opportunities and enhance its operational efficiencies. An improved operating income reflects a strategic shift towards higher-margin projects and effective cost management.
Frequency Electronics, Inc. Price, Consensus and EPS Surprise
Frequency Electronics, Inc. price-consensus-eps-surprise-chart | Frequency Electronics, Inc. Quote
Business Metrics
Satellite Payloads
Revenues from satellite payloads constituted 44% of total revenues in fourth-quarter fiscal 2024, amounting to around $6.9 million, compared to roughly $5.1 million (39% of total revenues) in fourth-quarter fiscal 2023. The growth indicates increased demand and successful market penetration in this segment.
U.S. Government/DOD Customers
Revenues from non-space U.S. Government/DOD customers were around $7.9 million in the reported quarter, representing 51% of total revenues compared to roughly $7.3 million (56%) in the same period last year. This segment's steady contribution underscores FEI’s strong foothold in government contracts.
Commercial and Industrial Sales
Other commercial and industrial sales accounted for around $0.8 million (5% of total revenues) in fourth-quarter fiscal 2024, up from roughly $0.6 million (4%) in the year-ago quarter.
Gross Margin and Operating Income
FEIM's gross margin improved to $6.3 million in the reported quarter from $4 million in fourth-quarter fiscal 2023, driven by higher revenues and better cost control. The operating income rose to $2.5 million from $0.4 million, reflecting enhanced operational efficiency.
Backlog
The backlog at the end of fiscal 2024 was $78 million, a substantial increase from $57 million at the end of fiscal 2023. This represents the highest backlog in the company's history, underscoring a robust pipeline of future projects and sustained demand for FEIM’s products.
Balance Sheet Position (As of Apr 30, 2024)
Frequency Electronics’ cash and cash equivalents were $18.3 million, an increase from $12 million at the same time last year. Total assets of $85.6 million implies a rise from $74.5 million as of Apr 30, 2023.
Contract liabilities increased to $24 million from $18.6 million the previous year. Other current liabilities rose to $7.5 million from $6.9 million, while other long-term obligations slightly decreased to $8.1 million from $8.4 million.
Stockholders’ equity increased to $39.8 million from $32.9 million.
Operating Cash Flows
Net cash provided by operating activities for fiscal year 2024 was around $8.7 million, a substantial increase from $1.2 million in the previous fiscal year.
Full-Year Update
For the full fiscal year 2024, EPS was $0.59 against a loss of $0.59 in fiscal year 2023. Annual revenues for fiscal 2024 were $55.3 million, marking a 35.6% increase from $40.8 million in fiscal 2023.
Satellite payloads contributed $23.2 million, or 42% of total revenues, up from $17.9 million (44%) in fiscal 2023. Revenues from U.S. Government/DOD Customers were $29 million (52% of total revenues), compared to $20.3 million (50%) in fiscal 2023. Other commercial and industrial sales reached $3.1 million (6% of total revenues), increasing from $2.6 million (6%) in the previous fiscal year.
Management Guidance
The company anticipates continued growth in new business during the fiscal year ending Apr 30, 2025. Management remains committed to achieving sustained profitability and strong cash generation. The strategic focus will be on maintaining high operational standards, cost efficiency, and leveraging market opportunities to drive revenue growth.
Other Developments
Special Cash Dividend
On Jul 22, 2024, FEIM declared a special cash dividend of $1.00 per share, payable on Aug 29, 2024, to stockholders of record as of Aug 8, 2024. This dividend, totaling approximately $9.4 million, reflects the company's strong cash position and commitment to returning value to shareholders.