Orion Energy Systems (NASDAQ:OESX) Posts Earnings Results, Beats Expectations By $0.40 EPS

Orion Energy Systems (NASDAQ:OESX) announced its earnings results on Wednesday. The electronics maker reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.07 by $0.40, FiscalAI reports. The company had revenue of $25.74 million during the quarter, compared to analyst estimates of $23.56 million. Orion Energy Systems had a negative net margin of 3.66% and a negative return on equity of 11.81%.

Here are the key takeaways from Orion Energy Systems’ conference call:

• Orion reported a strong fiscal 2027 first quarter, with revenue up 32% year over year to $25.7 million, gross margin expanding to 34.6%, net income reaching $2.0 million, and adjusted EBITDA increasing to $2.5 million. This marked the company’s seventh consecutive quarter of positive adjusted EBITDA.
• Management maintained its fiscal 2027 outlook for $95 million-$97 million of revenue and positive adjusted EBITDA, while citing an improving sales pipeline and approximately $24 million of backlog exiting Q1. Growth is expected across automotive, retail, public-sector, EV charging, and industrial electrification projects.
• Orion has begun shipping its lighting solution to an initial hyperscale data-center customer, with individual buildings potentially representing seven-figure opportunities. Management said the data-center pipeline is developing, though the larger revenue ramp is expected later in fiscal 2027 and into fiscal 2028, with minimal additional fixed-asset investment required.
• EV charging revenue rose to $4.0 million, but segment gross margin declined to 26.9% from 33.8% a year earlier amid continued uncertainty in the U.S. EV market. Overall Q1 gross margin also benefited by roughly 130 basis points from tariff changes and refunds, and management expects normalized full-year gross margin in the 30%-32% range.

Orion Energy Systems Trading Up 54.4%

Shares of Orion Energy Systems stock traded up $5.66 during trading on Wednesday, reaching $16.06. The company’s stock had a trading volume of 675,210 shares, compared to its average volume of 36,774. Orion Energy Systems has a 52-week low of $5.60 and a 52-week high of $18.64. The company has a market cap of $65.20 million, a price-to-earnings ratio of -17.46 and a beta of 0.77. The firm’s 50-day moving average is $10.31 and its two-hundred day moving average is $10.91. The company has a quick ratio of 1.03, a current ratio of 1.41 and a debt-to-equity ratio of 0.34.

Wall Street Analysts Forecast Growth

OESX has been the subject of several research analyst reports. Wall Street Zen lowered Orion Energy Systems from a “strong-buy” rating to a “buy” rating in a research note on Saturday, June 6th. Weiss Ratings lowered Orion Energy Systems from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, May 14th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $20.00.

Hedge Funds Weigh In On Orion Energy Systems

A number of large investors have recently added to or reduced their stakes in OESX. NewEdge Advisors LLC purchased a new stake in Orion Energy Systems during the fourth quarter valued at about $232,000. Quadrature Capital Ltd bought a new position in shares of Orion Energy Systems during the fourth quarter valued at about $202,000. Finally, Marshall Wace LLP purchased a new position in shares of Orion Energy Systems in the fourth quarter worth about $706,000. Hedge funds and other institutional investors own 52.59% of the company’s stock.

About Orion Energy Systems

Orion Energy Systems, Inc is a U.S.-based provider of energy-efficient lighting and building controls solutions. Founded in 1996 and headquartered in Manitowoc, Wisconsin, the company specializes in designing, manufacturing and deploying LED lighting fixtures and integrated energy management systems for commercial and industrial customers.

The company’s product portfolio includes a range of LED light fixtures, smart sensors, networked controls and cloud-based energy management software.