The current average analyst rating on the shares is buy, with the breakdown showing 2 strong buy or buy ratings, no hold ratings and no sell or strong sell ratings.
The average consensus recommendation for the electrical components and equipment peer group is buy. Wall Street's median 12-month price target for Frequency Electronics Inc is $81.00, about 27.3% above its September 9 closing price of $63.64.
The stock recently traded at 50 times the next 12-month earnings, compared with a P/E of 72 three months ago.
Backlog and outlook point to further growth
Frequency Electronics said its funded backlog reached $129 million, up 82% year over year, supporting further growth.
The company expects to be cash-generative on an annual basis going forward and maintains its annual revenue target of $150 million or more by fiscal 2029.
Growth driven by space and defense market expansion
The company said growth was supported by sales into larger end-markets, including space and defense applications.
It also said higher sales volumes allowed it to demonstrate significant profitability improvement, with gross margin expanding to approximately 46% and operating margin exceeding 22%.
Q1 results show record revenue and stronger profitability
Frequency Electronics said fiscal first-quarter revenue rose 70% year over year to record levels, with operating margin exceeding 22% as profitability improved significantly.
The company reported quarterly revenue of $23.45 million, beating the consensus estimate of $17.85 million from two analysts. Q1 earnings per share were $0.41, while net income was $4.22 million. Pretax profit came in at $5.24 million, above the consensus estimate of $2.63 million from one analyst. Operating income was $5.20 million.
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