Optical Cable (NASDAQ:OCC) Announces Earnings Results

Optical Cable (NASDAQ:OCC) issued its quarterly earnings results on Monday. The communications equipment provider reported $0.12 earnings per share (EPS) for the quarter, Zacks reports. Optical Cable had a negative net margin of 1.01% and a negative return on equity of 4.14%. During the same quarter last year, the business posted ($0.09) EPS.

Here are the key takeaways from Optical Cable’s conference call:

• OCC posted strong second-quarter growth, with net sales up 26.6% year over year to $22.2 million and gross profit up 42.4% to $7.6 million, reflecting solid demand across enterprise, data center, and severe duty markets.
• Margins improved meaningfully as gross margin rose to 34.2% from 30.4% a year ago, helped by higher volume and manufacturing operating leverage. SG&A as a percentage of sales also declined, showing improved operating leverage.
• Profitability turned positive, with OCC reporting net income of $1.1 million, or $0.12 per share, versus a net loss in the prior-year quarter; first-half results also moved into the black.
• Backlog and forward load strengthened to $13.3 million at quarter-end, up more than 27% sequentially and more than 82% from October 2025, suggesting continued demand into the second half of fiscal 2026.
• Management said data center demand remains a key growth driver, especially in multi-tenant and enterprise data centers, but noted longer sales cycles and industry-wide optical fiber shortages are creating lead-time pressure across the sector.

Optical Cable Price Performance

OCC opened at $19.00 on Tuesday. The firm has a fifty day moving average price of $11.35 and a 200 day moving average price of $8.03. Optical Cable has a 1 year low of $2.48 and a 1 year high of $22.00. The stock has a market cap of $167.77 million, a P/E ratio of -211.09 and a beta of 0.62.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Optical Cable in a research note on Tuesday, April 21st. One analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock has an average rating of “Sell”.

Key Headlines Impacting Optical Cable

Here are the key news stories impacting Optical Cable this week:

• Positive Sentiment: OCC reported fiscal Q2 net sales of $22.2 million, up 26.6% year over year, with management citing strength in enterprise, data center, and severe-duty markets. OPTICAL CABLE CORPORATION REPORTS SECOND QUARTER OF FISCAL YEAR 2026 FINANCIAL RESULTS
• Positive Sentiment: Gross profit rose 42.4% to $7.6 million and gross margin improved to 34.2%, indicating better operating leverage as volumes increased. OPTICAL CABLE CORPORATION REPORTS SECOND QUARTER OF FISCAL YEAR 2026 FINANCIAL RESULTS
• Positive Sentiment: The company swung to net income of $1.1 million, or $0.12 per share, from a net loss of $0.7 million, or $0.09 per share, a year ago, which is the main reason investors are bidding up the stock. Optical Cable Gains After Swing to Profit in 2Q
• Positive Sentiment: Backlog/forward load increased to $13.3 million from $10.4 million, suggesting stronger near-term demand visibility heading into the second half of the year. Optical Cable Corp (OCC) Q2 2026 Earnings Call Highlights: Strong Sales Growth and Improved …
• Neutral Sentiment: Several earnings call transcripts and coverage pieces echoed the same turnaround theme, focusing on stronger sales, margin improvement, and improved profitability. OCC Q2 2026 Earnings Call Transcript

Hedge Funds Weigh In On Optical Cable

Large investors have recently made changes to their positions in the company. Gendell Jeffrey L raised its position in Optical Cable by 47.4% during the fourth quarter. Gendell Jeffrey L now owns 415,340 shares of the communications equipment provider’s stock worth $1,848,000 after acquiring an additional 133,510 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Optical Cable by 1.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 268,932 shares of the communications equipment provider’s stock worth $1,197,000 after purchasing an additional 4,497 shares in the last quarter. Royal Bank of Canada increased its stake in shares of Optical Cable by 8.3% during the first quarter. Royal Bank of Canada now owns 124,769 shares of the communications equipment provider’s stock worth $348,000 after purchasing an additional 9,535 shares in the last quarter. Two Sigma Investments LP purchased a new position in Optical Cable in the 3rd quarter valued at about $487,000. Finally, Bridgeway Capital Management LLC lifted its stake in Optical Cable by 46.2% in the 4th quarter. Bridgeway Capital Management LLC now owns 48,268 shares of the communications equipment provider’s stock valued at $215,000 after buying an additional 15,255 shares in the last quarter. 13.61% of the stock is currently owned by institutional investors and hedge funds.

About Optical Cable

Optical Cable Corporation (NASDAQ: OCC) is a publicly traded designer and manufacturer of optical fiber and copper communications cable solutions. Headquartered in Roanoke, Virginia, the company develops a broad range of standard and custom cable assemblies, connectors, hardware and accessories. Its product portfolio addresses data transmission requirements in demanding environments, including long-haul telecommunications, industrial automation, defense systems and submersible applications.

The company’s offerings are organized across multiple product lines, encompassing outside-plant fiber optic cable for aerial and underground installations, indoor/outdoor copper connectivity and specialty engineered cable assemblies.