Optical Cable (NASDAQ:OCC) Posts Earnings Results

Optical Cable (NASDAQ:OCC) released its quarterly earnings data on Thursday. The communications equipment provider reported $0.01 earnings per share for the quarter, Zacks reports. The firm had revenue of $19.83 million during the quarter. Optical Cable had a negative net margin of 1.55% and a negative return on equity of 5.80%. During the same period in the previous year, the firm earned $0.05 earnings per share.

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

• Fiscal 2025 results showed improvement — net sales of $73.0M (+9.5% YoY), gross profit up 24.1% and gross margin expanding to 30.9% (from 27.3%), driven by manufacturing and SG&A operating leverage.
• OCC announced a strategic collaboration with Lyttera, which bought shares to hold 7.24% of OCC, and management expects the partnership to expand data center and enterprise product offerings and contribute to FY2026 top‑line growth.
• Demand visibility improved as order backlog/forward load rose to $7.3M from $5.7M a year earlier, supporting management’s expectation of additional growth opportunities in FY2026.
• Despite stronger margins and H2 profitability, OCC still recorded a fiscal‑year net loss of $1.5M (−$0.18 per share), albeit narrower than the $4.2M loss in FY2024.
• Management reiterated typical seasonality (weaker Q1–Q2), said current capacity should support expected growth, and noted ongoing hiring that management does not expect to materially increase operating expenses.

Optical Cable Price Performance

Shares of OCC opened at $5.50 on Friday. The firm has a market cap of $48.79 million, a P/E ratio of -39.28 and a beta of 0.52. Optical Cable has a 1 year low of $2.08 and a 1 year high of $11.50. The company has a 50 day simple moving average of $8.07 and a two-hundred day simple moving average of $6.45.

Analysts Set New Price Targets

OCC has been the subject of a number of research reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Optical Cable in a research note on Wednesday, October 8th. Wall Street Zen downgraded shares of Optical Cable from a “buy” rating to a “hold” rating in a report on Saturday, September 13th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock presently has an average rating of “Sell”.

Hedge Funds Weigh In On Optical Cable

Several institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada increased its holdings in Optical Cable by 8.3% in the 1st quarter. Royal Bank of Canada now owns 124,769 shares of the communications equipment provider’s stock valued at $348,000 after acquiring an additional 9,535 shares during the last quarter. Bridgeway Capital Management LLC grew its position in shares of Optical Cable by 162.0% during the third quarter. Bridgeway Capital Management LLC now owns 33,013 shares of the communications equipment provider’s stock valued at $268,000 after purchasing an additional 20,413 shares in the last quarter. Two Sigma Investments LP bought a new stake in shares of Optical Cable in the third quarter worth about $487,000. Finally, Citadel Advisors LLC purchased a new stake in shares of Optical Cable in the third quarter worth about $102,000. 13.61% of the stock is owned by hedge funds and other institutional investors.

Optical Cable Company Profile

Optical Cable Corporation, together with its subsidiaries, engages in the manufacture and sale of fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company provides fiber optic and hybrid cables for high bandwidth transmission of data, video, and voice communications; and copper datacom cables, including unshielded and shielded twisted pair constructions.