Precision Optics (NASDAQ:POCI) Announces Earnings Results

Precision Optics (NASDAQ:POCI) issued its earnings results on Tuesday. The company reported ($0.23) earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $7.37 million during the quarter. Precision Optics had a negative return on equity of 57.08% and a negative net margin of 28.33%.

Here are the key takeaways from Precision Optics’ conference call:

• Record Q2 revenue of $7.4 million, with production revenue up 92% year‑over‑year, driven primarily by the aerospace and single‑use cystoscope programs.
• New operations leadership and process changes increased aerospace line throughput by more than 50% since Q1, and management expects continued weekly improvements with positive Adjusted EBITDA beginning in Q4.
• Program‑level fixes — customer‑approved design and supply‑chain changes for the cystoscope — are expected to add roughly $150k–$200k of quarterly gross profit, while the ophthalmic ramp targets 10k–15k units (~$2–3M) with >30% gross margin.
• Gross margin collapsed to 2.8% in Q2 (from 14.2% sequential) and Adjusted EBITDA was –$1.5M; full‑year Adjusted EBITDA guidance was revised to –$2.5M to -$3.0M, with quarter‑end cash of ~$900k and bank debt of $1.6M.
• Product development bookings are at their highest level in over a year and Ross Optical backlog is the strongest in more than three years, signaling an early recovery in engineering and aftermarket demand.

Precision Optics Stock Performance

POCI traded down $0.29 during midday trading on Thursday, hitting $4.35. 3,263 shares of the company traded hands, compared to its average volume of 25,380. The company’s 50-day moving average is $4.59 and its 200 day moving average is $4.51. The company has a quick ratio of 0.79, a current ratio of 1.29 and a debt-to-equity ratio of 0.10. The firm has a market capitalization of $33.54 million, a PE ratio of -4.72 and a beta of 0.32. Precision Optics has a 52 week low of $3.77 and a 52 week high of $6.04.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Precision Optics in a research report on Thursday, January 22nd. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company presently has an average rating of “Sell”.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Needham Investment Management LLC grew its position in Precision Optics by 2.9% in the 4th quarter. Needham Investment Management LLC now owns 720,000 shares of the company’s stock worth $3,013,000 after purchasing an additional 20,000 shares during the period. WealthTrust Axiom LLC lifted its holdings in shares of Precision Optics by 2.7% during the 4th quarter. WealthTrust Axiom LLC now owns 231,808 shares of the company’s stock valued at $970,000 after buying an additional 6,158 shares during the period. Geode Capital Management LLC boosted its stake in shares of Precision Optics by 3.4% in the 4th quarter. Geode Capital Management LLC now owns 58,436 shares of the company’s stock worth $245,000 after buying an additional 1,926 shares during the last quarter. DRW Securities LLC purchased a new position in shares of Precision Optics in the 4th quarter worth $94,000. Finally, Jane Street Group LLC bought a new stake in shares of Precision Optics in the fourth quarter worth $48,000. Institutional investors own 13.71% of the company’s stock.

About Precision Optics

Precision Optics Corporation, Inc designs, develops, manufactures, and sells specialized optical and illumination systems and related components primarily in the United States and the European Economic Area. It offers medical instrumentation products, including endoscopes and endocouplers, as well as other custom imaging and illumination products, such as Microprecision lenses and micro medical cameras, and 3D endoscopes for use in minimally invasive surgical procedures by hospitals and physicians.