Ultralife (NASDAQ:ULBI) Posts Earnings Results, Hits Expectations

Ultralife (NASDAQ:ULBI) released its quarterly earnings data on Friday. The technology company reported $0.19 EPS for the quarter, hitting analysts’ consensus estimates of $0.19, Zacks reports. Ultralife had a positive return on equity of 1.15% and a negative net margin of 4.37%.The business had revenue of $47.94 million during the quarter, compared to the consensus estimate of $55.00 million.

Here are the key takeaways from Ultralife’s conference call:

• Profitability improved: Q2 revenue was $47.9 million, while GAAP EPS rose to $0.15 from $0.05 a year ago. Gross margin expanded to 28.9% from 23.9%, although $1.1 million of tariff refunds contributed approximately 230 basis points of the improvement.
• Backlog reached a record $117.5 million, up 39% year over year, and management said it had increased to nearly $130 million by July. More than $14 million of the quarter-end backlog came from products launched within the past year.
• Communications Systems revenue increased 39.3% year over year, supported by new amplifiers, ruggedized computing products, and opportunities tied to next-generation military command-and-control programs.
• Management expects Battery & Energy Products margin initiatives to generate approximately $600,000 to $800,000 in annual savings, while vertical integration from the Electrochem acquisition and underwater drone programs are expected to contribute incremental revenue beginning in Q4 and into 2027.
• Consolidated revenue declined modestly from $48.6 million a year ago, with Battery & Energy Products revenue down 3.7% and commercial sales pressured by lower oil and gas demand and geopolitical factors.

Ultralife Trading Up 19.4%

ULBI traded up $1.03 during trading on Friday, hitting $6.35. 99,851 shares of the company’s stock were exchanged, compared to its average volume of 31,200. The company has a current ratio of 2.56, a quick ratio of 1.23 and a debt-to-equity ratio of 0.34. Ultralife has a 1 year low of $4.90 and a 1 year high of $8.25. The stock has a 50 day moving average price of $6.01 and a 200 day moving average price of $6.34. The firm has a market cap of $105.79 million, a P/E ratio of -12.70 and a beta of 0.80.

Wall Street Analyst Weigh In

Separately, Weiss Ratings lowered Ultralife from a “sell (d+)” rating to a “sell (d)” rating in a research note on Friday, June 12th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat, the stock has a consensus rating of “Sell”.

Insider Activity at Ultralife

In other Ultralife news, Director Bradford T. Whitmore bought 67,302 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were acquired at an average price of $6.81 per share, with a total value of $458,326.62. Following the purchase, the director owned 2,050,637 shares in the company, valued at approximately $13,964,837.97. The trade was a 3.39% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Over the last quarter, insiders have acquired 108,878 shares of company stock valued at $714,928. Company insiders own 42.90% of the company’s stock.

Institutional Trading of Ultralife

Large investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE lifted its stake in shares of Ultralife by 30.7% during the fourth quarter. Bank of America Corp DE now owns 12,067 shares of the technology company’s stock worth $90,000 after purchasing an additional 2,836 shares in the last quarter. Jones Financial Companies Lllp grew its stake in shares of Ultralife by 1,428.7% in the first quarter. Jones Financial Companies Lllp now owns 15,287 shares of the technology company’s stock valued at $82,000 after buying an additional 14,287 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Ultralife by 474.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 70,476 shares of the technology company’s stock valued at $633,000 after buying an additional 58,211 shares in the last quarter. Walleye Capital LLC raised its holdings in shares of Ultralife by 127.2% during the 2nd quarter. Walleye Capital LLC now owns 31,102 shares of the technology company’s stock valued at $279,000 after buying an additional 17,414 shares during the period. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of Ultralife during the 2nd quarter valued at about $134,000. 30.68% of the stock is currently owned by institutional investors and hedge funds.

Ultralife Company Profile

Ultralife Corporation (NASDAQ: ULBI) develops, manufactures and sells a broad range of energy and communications products for defense, medical, automotive and consumer electronics markets. The company operates through two primary segments: Power Systems and Communications Systems. In its Power Systems segment, Ultralife produces lithium-ion rechargeable cells and battery packs, primary lithium batteries, alkaline and rechargeable battery packs, chargers and battery accessories designed to meet demanding performance and safety requirements.