Universal Electronics (NASDAQ:UEIC) Announces Quarterly Earnings Results

Key Points

• Universal Electronics reported adjusted earnings of $0.34 per share, surpassing the $0.03 consensus estimate, but revenue fell 25% year over year to $73.24 million and missed expectations.
• Cost reductions helped the company achieve $4.6 million in adjusted net income despite weaker sales. Management reaffirmed 2026 adjusted EPS guidance of $0.45 to $0.65, compared with $0.31 in 2025.
• New customer programs, including a major remote-control contract and smart thermostat production, support future growth, while component costs, availability, and ongoing intellectual-property litigation remain risks.

Universal Electronics (NASDAQ:UEIC - Get Free Report) issued its quarterly earnings results on Thursday. The technology company reported $0.34 earnings per share for the quarter, beating analysts' consensus estimates of $0.03 by $0.31, FiscalAI reports. The company had revenue of $73.24 million during the quarter, compared to the consensus estimate of $78.13 million. Universal Electronics had a negative net margin of 5.54% and a positive return on equity of 0.41%. Universal Electronics updated its FY 2026 guidance to 0.450-0.650 EPS.

Here are the key takeaways from Universal Electronics' conference call:

• Revenue fell 25% year over year to $73.2 million, with declines in both Connected Home and Home Entertainment driven by weak customer demand, subscription-broadcasting pressure, legacy video trends, and delayed Connected Home growth.
• Adjusted non-GAAP operating expenses declined 24% year over year to $19.4 million, helping the company move from an adjusted loss in Q1 to adjusted net income of $4.6 million, or $0.34 per share, in Q2 despite lower revenue.
• Management reaffirmed its full-year 2026 adjusted diluted EPS guidance of $0.45 to $0.65, versus $0.31 in 2025, while reporting $5.5 million of positive first-half operating cash flow, $32.4 million of cash, and no borrowings on its U.S. credit line.
• Customer traction included becoming the sole-source supplier for a major video customer’s remote-control program entering production in November and shipping the first mass-production lot of a smart thermostat platform, with additional fourth-quarter volume requested.
• Richard Carnifax stepped down as interim CEO, with CFO Wade Jenke appointed CEO effective August 6; management said the leadership transition does not change the operating plan, while component costs and availability remain key second-half risks and Amazon and Roku intellectual-property litigation continues.

Universal Electronics Stock Up 0.8%

Shares of Universal Electronics stock traded up $0.04 during midday trading on Thursday, hitting $4.80. The company's stock had a trading volume of 33,914 shares, compared to its average volume of 51,031. Universal Electronics has a 1-year low of $2.69 and a 1-year high of $6.69. The firm has a market capitalization of $60.62 million, a P/E ratio of -3.20 and a beta of 1.19. The stock has a 50-day simple moving average of $4.39 and a 200-day simple moving average of $4.20.

Hedge Funds Weigh In On Universal Electronics

Institutional investors and hedge funds have recently bought and sold shares of the business. Man Group plc grew its holdings in shares of Universal Electronics by 2.9% during the 4th quarter. Man Group plc now owns 102,924 shares of the technology company's stock valued at $372,000 after acquiring an additional 2,905 shares in the last quarter. State Street Corp increased its stake in shares of Universal Electronics by 9.7% in the fourth quarter. State Street Corp now owns 56,520 shares of the technology company's stock worth $204,000 after acquiring an additional 5,000 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Universal Electronics by 9.8% during the fourth quarter. Empowered Funds LLC now owns 66,178 shares of the technology company's stock worth $239,000 after acquiring an additional 5,900 shares in the last quarter. Citadel Advisors LLC raised its holdings in shares of Universal Electronics by 12.3% during the third quarter. Citadel Advisors LLC now owns 78,005 shares of the technology company's stock worth $364,000 after acquiring an additional 8,547 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in Universal Electronics by 15.6% during the first quarter. Goldman Sachs Group Inc. now owns 36,341 shares of the technology company's stock valued at $222,000 after purchasing an additional 4,893 shares during the last quarter. Hedge funds and other institutional investors own 79.35% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on UEIC shares. Wall Street Zen cut Universal Electronics from a "buy" rating to a "hold" rating in a research note on Saturday, May 16th. Weiss Ratings raised shares of Universal Electronics from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, June 23rd. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus price target of $5.75.

About Universal Electronics

Universal Electronics Inc NASDAQ: UEIC is a leading provider of sensing and control technologies for the smart home and consumer electronics markets. The company specializes in design, development and manufacturing of remote control devices, wireless connectivity modules and integrated sensing solutions. Its core expertise lies in infrared (IR) and radio frequency (RF) remote controls, voice-enabled control devices and universal remotes that allow consumers to manage multiple home entertainment and automation systems through a single interface.

In addition to traditional remote control products, Universal Electronics has expanded its portfolio to include Internet of Things (IoT) gateways, home-automation hubs and cloud-based management platforms.

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