Frequency Electronics Shares Jump 27% After Record Q1 Revenue

Frequency Electronics shares surged 27.3% in after-hours trading following fiscal first-quarter results that exceeded analyst expectations. The company, which produces precision timing and frequency control equipment, reported earnings per share of $0.41. This result beat the consensus estimate of $0.29 by $0.12.

"First quarter revenue of $23.5 million, an all-time record for FEI, up 70% year-over-year and up 52% sequentially," said Thomas McClelland, Chief Executive Officer, Frequency Electronics, in a statement regarding the release.

Financial Performance and Backlog Growth

The revenue of $23.5 million represents an increase over the prior-year period. This growth is supported by the company's expanding order book, which provides visibility into future production requirements.

According to the earnings call transcript, the company's backlog grew to $129 million. This figure marks an 82% increase compared to the same period last year and a 16% increase on a sequential basis.

Long-Term Revenue Targets

Management reiterated its long-term financial objectives. The company is targeting an annual revenue threshold of at least $150 million by fiscal 2029.

This growth strategy relies on the company’s ability to maintain its position in the precision timing market, where its components are utilized in satellite communications, defense, and commercial timing infrastructure. The current backlog expansion indicates that demand for these specialized frequency control systems supports the firm's multi-year revenue projections.