Optex Systems (NASDAQ:OPXS) Issues Quarterly Earnings Results

Optex Systems (NASDAQ:OPXS) announced its earnings results on Tuesday. The company reported $0.18 earnings per share for the quarter, FiscalAI reports. The firm had revenue of $9.73 million for the quarter. Optex Systems had a return on equity of 18.03% and a net margin of 9.77%.

Here are the key takeaways from Optex Systems’ conference call:

• Revenue and profitability increased: Nine-month revenue rose 22.3% to $30.1 million, while net income increased 46% to $4.1 million and adjusted EBITDA grew to $5.7 million, driven by higher periscope production and military laser-filter demand.
• The company ended the quarter with $4.9 million in cash, no outstanding line-of-credit balance, and $5.4 million of operating cash flow; management later reported approximately $6 million of cash as of August 5 and is evaluating acquisitions, investment, dividends, and buybacks.
• Backlog recovered to approximately $45 million as of August 5 after new awards, including a $2.8 million XM30 order, a $10.2 million five-year optical sighting systems contract, and a $1.6 million laser-filter order; however, the $10.2 million award is an unfunded, “up to” requirement contract and only $4.2 million had initially been funded.
• Reported backlog at June 29 was $38.3 million, down 16% year over year, while nine-month gross margin declined to 28% from 29%; the company also increased loss reserves on legacy IDIQ programs because labor hours exceeded initial estimates, although those programs are expected to wind down within the next fiscal year.

Optex Systems Price Performance

OPXS traded up $0.09 during midday trading on Thursday, reaching $11.37. 15,787 shares of the company’s stock traded hands, compared to its average volume of 44,594. The stock has a market capitalization of $79.10 million, a price-to-earnings ratio of 20.66 and a beta of 0.50. The firm has a fifty day moving average of $12.47 and a two-hundred day moving average of $12.51. Optex Systems has a 52 week low of $9.74 and a 52 week high of $17.76.

Hedge Funds Weigh In On Optex Systems

A number of institutional investors have recently bought and sold shares of the stock. Wasatch Advisors LP raised its stake in Optex Systems by 59.4% during the second quarter. Wasatch Advisors LP now owns 634,671 shares of the company’s stock worth $8,904,000 after purchasing an additional 236,523 shares during the period. Archon Capital Management LLC raised its position in shares of Optex Systems by 109.8% during the 4th quarter. Archon Capital Management LLC now owns 176,004 shares of the company’s stock valued at $2,496,000 after buying an additional 92,094 shares during the period. World Investment Advisors acquired a new position in Optex Systems in the fourth quarter valued at approximately $821,000. Marshall Wace LLP purchased a new position in Optex Systems in the second quarter worth approximately $604,000. Finally, O Shaughnessy Asset Management LLC increased its stake in Optex Systems by 92.3% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 72,795 shares of the company’s stock worth $1,032,000 after acquiring an additional 34,942 shares during the last quarter. 19.07% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Optex Systems in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy”.

Optex Systems Company Profile

Optex Systems Holdings, Inc (NASDAQ: OPXS) is a technology company specializing in infrared sensing systems for defense and homeland security applications. The company engineers, designs and manufactures electro-optical and infrared (EO/IR) payloads and sensors used across a range of surveillance and targeting platforms. Its core focus areas include mission-critical solutions for unmanned aerial vehicles (UAVs), rotary- and fixed-wing aircraft, and ground-based observation systems.

Optex Systems’ product portfolio consists of high-resolution thermal imaging cameras, infrared seekers, laser designators and multispectral platforms.