RF Industries Ltd. reported fourth-quarter revenue of $45.6 million, up 23% from $37.1 million in the year-ago period. Adjusted earnings per share came in at $0.52, outperforming the consensus estimate of $0.41 by 27%. Gross margin expanded sharply, rising 620 basis points to 35.2% as higher-value cable assemblies and improved factory utilization drove profitability. Operating income more than doubled to $4.3 million, compared with $1.9 million in Q4 of the prior year.

Following the earnings release, RF Industries shares surged 21.3% in premarket trading and extended gains to 20.94% in after-hours activity. Volume spiked to five times the 30-day average as institutional investors repositioned ahead of the company’s conference call. Analysts at two major brokerages raised their ratings, citing the unexpected margin improvement and stronger-than-forecast order backlog.

Management raised full-year revenue guidance to a range of $190 million to $200 million, up from prior estimates of $175 million to $185 million, and projected non-GAAP EPS of $1.85 to $1.95. The company highlighted an expanded sales pipeline in 5G and aerospace segments, which are expected to contribute 40% of total revenues by year end. Investors will watch working capital trends and the timing of new production line startups as key catalysts for further upside.