Precision Optics (NASDAQ:POCI) Posts Quarterly Earnings Results

Precision Optics (NASDAQ:POCI) announced its quarterly earnings data on Tuesday. The company reported ($0.23) EPS for the quarter, FiscalAI reports. Precision Optics had a negative net margin of 28.31% and a negative return on equity of 53.29%. The company had revenue of $7.37 million for the quarter.

Here are the key takeaways from Precision Optics’ conference call:

• Record Q2 revenue of $7.4 million, with production revenue up 92% year‑over‑year, driven primarily by the aerospace and single‑use cystoscope programs.
• New operations leadership and process changes increased aerospace line throughput by more than 50% since Q1, and management expects continued weekly improvements with positive Adjusted EBITDA beginning in Q4.
• Program‑level fixes — customer‑approved design and supply‑chain changes for the cystoscope — are expected to add roughly $150k–$200k of quarterly gross profit, while the ophthalmic ramp targets 10k–15k units (~$2–3M) with >30% gross margin.
• Gross margin collapsed to 2.8% in Q2 (from 14.2% sequential) and Adjusted EBITDA was –$1.5M; full‑year Adjusted EBITDA guidance was revised to –$2.5M to -$3.0M, with quarter‑end cash of ~$900k and bank debt of $1.6M.
• Product development bookings are at their highest level in over a year and Ross Optical backlog is the strongest in more than three years, signaling an early recovery in engineering and aftermarket demand.

Precision Optics Stock Down 2.1%

Precision Optics stock opened at $4.66 on Wednesday. The company has a current ratio of 1.29, a quick ratio of 0.79 and a debt-to-equity ratio of 0.10. Precision Optics has a 1-year low of $3.77 and a 1-year high of $6.04. The firm’s fifty day simple moving average is $4.59 and its 200-day simple moving average is $4.51. The company has a market capitalization of $35.98 million, a P/E ratio of -5.55 and a beta of 0.32.

Hedge Funds Weigh In On Precision Optics

Several institutional investors have recently bought and sold shares of POCI. Jane Street Group LLC acquired a new stake in shares of Precision Optics in the fourth quarter worth about $48,000. Citadel Advisors LLC bought a new position in shares of Precision Optics in the 3rd quarter valued at approximately $49,000. DRW Securities LLC acquired a new stake in Precision Optics in the 4th quarter worth approximately $94,000. Geode Capital Management LLC boosted its position in Precision Optics by 3.4% during the fourth quarter. Geode Capital Management LLC now owns 58,436 shares of the company’s stock worth $245,000 after purchasing an additional 1,926 shares during the period. Finally, WealthTrust Axiom LLC grew its holdings in Precision Optics by 2.7% during the fourth quarter. WealthTrust Axiom LLC now owns 231,808 shares of the company’s stock valued at $970,000 after purchasing an additional 6,158 shares during the last quarter. 13.71% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Precision Optics in a report on Thursday, January 22nd. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Precision Optics has a consensus rating of “Sell”.

Precision Optics Company Profile

Precision Optics Corporation, Inc designs, develops, manufactures, and sells specialized optical and illumination systems and related components primarily in the United States and the European Economic Area. It offers medical instrumentation products, including endoscopes and endocouplers, as well as other custom imaging and illumination products, such as Microprecision lenses and micro medical cameras, and 3D endoscopes for use in minimally invasive surgical procedures by hospitals and physicians.