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. Optex Systems had a net margin of 10.00% and a return on equity of 19.33%. The company had revenue of $9.73 million during the quarter.

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 Stock Performance

NASDAQ OPXS traded down $0.81 during trading hours on Wednesday, reaching $10.80. 32,889 shares of the company’s stock were exchanged, compared to its average volume of 44,469. The company has a market capitalization of $75.17 million, a price-to-earnings ratio of 18.31 and a beta of 0.51. The company’s 50-day moving average is $12.48 and its two-hundred day moving average is $12.54. Optex Systems has a one year low of $9.74 and a one year high of $17.76.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a “hold (c+)” rating on shares of Optex Systems in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy”.

Institutional Investors Weigh In On Optex Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in OPXS. Beacon Pointe Advisors LLC raised its stake in shares of Optex Systems by 15.5% in the 4th quarter. Beacon Pointe Advisors LLC now owns 14,050 shares of the company’s stock valued at $199,000 after purchasing an additional 1,890 shares during the period. Vanguard Group Inc. raised its position in Optex Systems by 1.3% in the 3rd quarter. Vanguard Group Inc. now owns 158,087 shares of the company’s stock valued at $2,038,000 after buying an additional 1,975 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Optex Systems by 15.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 18,394 shares of the company’s stock valued at $237,000 after acquiring an additional 2,438 shares in the last quarter. Raymond James Financial Inc. acquired a new position in Optex Systems during the 2nd quarter worth approximately $30,000. Finally, Bank of America Corp DE grew its stake in shares of Optex Systems by 6,439.6% during the 3rd quarter. Bank of America Corp DE now owns 3,466 shares of the company’s stock worth $45,000 after acquiring an additional 3,413 shares in the last quarter. 19.07% of the stock is currently owned by institutional investors and hedge funds.

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.