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

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

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 Stock Performance

NASDAQ ULBI opened at $6.35 on Friday. The company has a 50-day simple moving average of $6.01 and a two-hundred day simple moving average of $6.34. The company has a quick ratio of 1.23, a current ratio of 2.56 and a debt-to-equity ratio of 0.34. Ultralife has a 12-month low of $4.90 and a 12-month high of $8.25. The firm has a market cap of $105.79 million, a price-to-earnings ratio of -15.87 and a beta of 0.80.

Insider Activity at Ultralife

In related news, Director Bradford T. Whitmore acquired 67,302 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The shares were purchased at an average price of $6.81 per share, for a total transaction of $458,326.62. Following the completion of the acquisition, the director owned 2,050,637 shares in the company, valued at approximately $13,964,837.97. This represents a 3.39% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Insiders bought a total of 108,878 shares of company stock valued at $714,928 in the last quarter. 42.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ultralife

Institutional investors have recently bought and sold shares of the stock. Empowered Funds LLC bought a new stake in Ultralife in the fourth quarter valued at approximately $44,000. Lazard Asset Management LLC grew its holdings in shares of Ultralife by 1,650.0% in the second quarter. Lazard Asset Management LLC now owns 5,565 shares of the technology company’s stock worth $49,000 after purchasing an additional 5,247 shares during the last quarter. Prelude Capital Management LLC purchased a new position in shares of Ultralife in the third quarter worth $71,000. Jane Street Group LLC purchased a new position in shares of Ultralife in the fourth quarter worth $75,000. Finally, Jones Financial Companies Lllp raised its holdings in Ultralife by 1,428.7% during the 1st 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 during the last quarter. 30.68% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

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

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.