Frequency Electronics (NASDAQ:FEIM) Reaches New 12-Month High Following Better-Than-Expected Earnings

Key Points

• Frequency Electronics posted better-than-expected quarterly results, with earnings per share of $0.41 versus the $0.15 consensus estimate and revenue of $23.45 million compared with expectations of $17.85 million.
• The stock surged to a new 52-week high of $82.35, up sharply from its prior close of $62.06, despite the company reporting a negative net margin and return on equity.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $43.67 price target, while institutional investors own 58.6% of the company.

Frequency Electronics, Inc. (NASDAQ:FEIM - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Friday following a stronger than expected earnings report. The company traded as high as $82.35 and last traded at $81.9870, with a volume of 44602 shares changing hands. The stock had previously closed at $62.06.

The communications equipment provider reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.26. Frequency Electronics had a negative net margin of 1.43% and a negative return on equity of 1.56%. The firm had revenue of $23.45 million for the quarter, compared to analysts' expectations of $17.85 million.

Wall Street Analyst Weigh In

FEIM has been the subject of a number of recent analyst reports. Wall Street Zen raised Frequency Electronics from a "strong sell" rating to a "sell" rating in a report on Saturday, July 4th. Weiss Ratings lowered Frequency Electronics from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, Frequency Electronics has a consensus rating of "Buy" and a consensus price target of $43.67.

Hedge Funds Weigh In On Frequency Electronics

Hedge funds and other institutional investors have recently bought and sold shares of the business. WINTON GROUP Ltd acquired a new stake in Frequency Electronics during the 2nd quarter worth $362,000. IFP Advisors Inc boosted its position in shares of Frequency Electronics by 46.0% in the 2nd quarter. IFP Advisors Inc now owns 1,905 shares of the communications equipment provider's stock worth $126,000 after purchasing an additional 600 shares during the last quarter. Squarepoint Ops LLC boosted its position in shares of Frequency Electronics by 43.3% in the 2nd quarter. Squarepoint Ops LLC now owns 18,862 shares of the communications equipment provider's stock worth $1,251,000 after purchasing an additional 5,702 shares during the last quarter. California State Teachers Retirement System grew its stake in shares of Frequency Electronics by 1,652.0% during the second quarter. California State Teachers Retirement System now owns 6,237 shares of the communications equipment provider's stock worth $414,000 after purchasing an additional 5,881 shares during the period. Finally, Raiffeisen Bank International AG grew its stake in shares of Frequency Electronics by 350.0% during the second quarter. Raiffeisen Bank International AG now owns 54,000 shares of the communications equipment provider's stock worth $3,336,000 after purchasing an additional 42,000 shares during the period. 58.60% of the stock is owned by institutional investors.

Frequency Electronics Price Performance

The business has a 50 day moving average of $65.54 and a 200 day moving average of $60.62. The firm has a market capitalization of $973.35 million, a price-to-earnings ratio of -912.91 and a beta of 0.72.

Frequency Electronics Company Profile

Frequency Electronics, Inc NASDAQ: FEIM is a U.S.-based designer and manufacturer of precision frequency control products and timing solutions. The company's portfolio includes oven-controlled crystal oscillators (OCXOs), atomic frequency standards such as rubidium oscillators, GPS-disciplined oscillators (GPSDOs), microwave synthesizers, and integrated timing subsystems. These products are used to provide stable and accurate frequency and time references for applications that demand high performance and reliability.

FEI serves a broad range of markets, including telecommunications, aerospace and defense, satellite and space systems, test and measurement equipment, and critical infrastructure.

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