The operational beat (revenue +70%, backlog +82%, operating margin >22%) far outweighs the headline EPS miss driven by a prior-year tax benefit. With $61M cash and no debt, FEIM is well-positioned to fund growth. Watch for continued backlog conversion and margin expansion in upcoming quarters.
Price Chart
Executive Summary
Frequency Electronics reported Q1 FY2027 revenue of $23.5M, a record and up 70% YoY, but reported GAAP EPS of -$0.50, a 433% miss vs consensus of $0.15 due to a large income tax benefit in the prior year. The company highlighted record funded backlog of $129M (up 82% YoY), strong operating leverage (22%+ operating margin), and a cash-rich balance sheet after a $73M secondary offering. The headline EPS miss is misleading given the strong operational performance and raised confidence in the $150M+ FY2029 revenue target.
Key Financial Metrics
Key Facts
- Record Q1 revenue of $23.5M, up 70% YoY and 52% sequentially
- Record funded backlog of $129M, up 82% YoY and 16% sequentially
- GAAP EPS of -$0.50 vs consensus $0.15 (433% miss) due to prior-year tax benefit
- Operating income surged to $5.2M from $0.4M YoY; operating margin >22%
- Cash and equivalents rose to $61.4M from $1.6M after $73M secondary offering
- Company reiterates confidence in $150M+ annual revenue target by FY2029
Financial Impact
Record revenue and backlog signal accelerating growth; GAAP EPS miss is non-operational and misleading
Risk Factors
- Revenue concentration on U.S. government and satellite programs
- Execution risk on $150M FY2029 revenue target
- Potential dilution from secondary offering (shares outstanding increased)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3359957 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $61.60 $64.18 | ▲ +4.19% | ▲ +4.71% | $67.28 (+9.22%) |
Oct 21, 2026 5d ago | Press Release | $61.60 $64.18 | ▲ +4.19% | ▲ +4.71% | $67.28 (+9.22%) |
Sep 10, 2026 6w ago | Press Release | $88.38 $85.50 | ▼ −3.25% | ▼ −2.81% | $67.28 (−23.87%) |
Sep 3, 2026 7w ago | Press Release | $60.67 | awaiting T+1 | — | $67.28 (+10.90%) |
Jul 28, 2026 12w ago | Press Release | $57.69 $59.89 | ▼ −3.81% | ▼ −2.14% | $67.28 (−16.62%) |
Jul 22, 2026 13w ago | EFFECT | $72.39 $73.24 | ▲ +1.17% | ▲ +2.41% | $67.28 (−7.06%) |
Jul 17, 2026 14w ago | S-3 | $66.72 $79.85 | ▲ +19.67% | ▲ +18.84% | $67.28 (+0.84%) |
Jun 12, 2026 19w ago | 8-K | $74.31 $70.15 | ▼ −5.60% | ▼ −5.00% | $67.28 (−9.46%) |
May 27, 2026 21w ago | Press Release | $75.60 $75.88 | ▲ +0.37% | ▲ +0.13% | $67.28 (−11.01%) |
Mar 11, 2026 32w ago | Press Release | $46.66 $48.11 | ▲ +3.11% | ▲ +3.71% | $67.28 (+44.19%) |
US Market Status
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