Optex Systems (NASDAQ:OPXS) Releases Quarterly Earnings Results

Optex Systems (NASDAQ:OPXS) released its quarterly earnings results on Wednesday. The company reported $0.03 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $9.15 million for the quarter. Optex Systems had a net margin of 12.45% and a return on equity of 26.08%.

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

• Revenue rose 11.6% YoY to $9.1M, new orders increased 31.7% to $7.9M, and backlog is approximately $37.9M, driven largely by Optex‑Richardson demand (XM30 and periscopes).
• Profitability compressed as gross margin fell to 22.9% and operating income dropped to $0.1M (from $0.9M) due to higher G&A (including leadership transition costs) and legacy low‑margin contracts.
• The board authorized a new share repurchase program of up to $10M while planning approximately $2.4M in capital investments; the company ended the quarter with $5.8M cash and stable working capital.
• The company increased contract loss reserves to $0.2M (driven by applied optics day window and a final legacy IDIQ award) and AOC revenue declined 20.1%, though management expects margins to improve as loss contracts conclude.

Optex Systems Price Performance

Shares of Optex Systems stock opened at $14.41 on Thursday. Optex Systems has a one year low of $5.36 and a one year high of $17.76. The firm has a market cap of $99.96 million, a price-to-earnings ratio of 19.47 and a beta of 0.65. The stock’s 50-day moving average is $14.52 and its 200-day moving average is $13.81.

Analyst Upgrades and Downgrades

Several brokerages have commented on OPXS. Weiss Ratings upgraded Optex Systems from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, January 30th. Wall Street Zen downgraded shares of Optex Systems from a “buy” rating to a “hold” rating in a research report on Saturday, December 20th. One research analyst has rated the stock with a Buy rating, According to MarketBeat, the stock currently has a consensus rating of “Buy”.

Insider Activity

In related news, Director Danny Robert Schoening sold 28,924 shares of the company’s stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $14.06, for a total transaction of $406,671.44. Following the completion of the sale, the director owned 796,730 shares of the company’s stock, valued at $11,202,023.80. This represents a 3.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders have sold a total of 110,578 shares of company stock valued at $1,510,898 over the last three months. Insiders own 27.70% of the company’s stock.

Institutional Investors Weigh In On Optex Systems

A number of institutional investors have recently added to or reduced their stakes in OPXS. Raymond James Financial Inc. purchased a new position in shares of Optex Systems in the 2nd quarter worth approximately $30,000. Bank of America Corp DE grew its position in 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 during the last quarter. LSV Asset Management bought a new position in Optex Systems in the second quarter worth about $63,000. Bridgeway Capital Management LLC purchased a new stake in shares of Optex Systems in the 3rd quarter worth about $142,000. Finally, Financial Advocates Investment Management raised its stake in Optex Systems by 9.8% during the second quarter. Financial Advocates Investment Management now owns 11,339 shares of the company’s stock valued at $130,000 after buying an additional 1,012 shares during the last quarter. 19.07% of the stock is owned by institutional investors.

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.