Ultralife (NASDAQ:ULBI) Issues Quarterly Earnings Results

Ultralife (NASDAQ:ULBI) released its quarterly earnings data on Friday. The technology company reported $0.19 EPS for the quarter, meeting the consensus estimate of $0.19, Zacks reports. The business had revenue of $47.94 million for 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 Price Performance

Shares of ULBI traded up $1.03 during mid-day trading on Friday, reaching $6.35. 99,851 shares of the stock traded hands, compared to its average volume of 31,200. The company has a market cap of $105.79 million, a price-to-earnings ratio of -12.70 and a beta of 0.80. Ultralife has a 1 year low of $4.90 and a 1 year high of $8.25. The firm has a fifty day moving average price of $6.01 and a 200 day moving average price of $6.34. The company has a current ratio of 2.56, a quick ratio of 1.23 and a debt-to-equity ratio of 0.34.

Insider Transactions at Ultralife

In other Ultralife news, Director Bradford T. Whitmore bought 67,302 shares of Ultralife stock in a transaction that occurred on Tuesday, May 26th. The stock was acquired at an average cost of $6.81 per share, for a total transaction of $458,326.62. Following the completion of the transaction, the director directly owned 2,050,637 shares in the company, valued at $13,964,837.97. This represents a 3.39% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Insiders acquired a total of 108,878 shares of company stock worth $714,928 over the last three months. 42.90% of the stock is currently owned by company insiders.

Institutional Trading of Ultralife

A number of large investors have recently modified their holdings of the business. Empowered Funds LLC purchased a new position in shares of Ultralife during the fourth quarter worth about $44,000. Lazard Asset Management LLC lifted its position in Ultralife by 1,650.0% during the second quarter. Lazard Asset Management LLC now owns 5,565 shares of the technology company’s stock valued at $49,000 after purchasing an additional 5,247 shares during the last quarter. Prelude Capital Management LLC purchased a new position in Ultralife in the 3rd quarter worth approximately $71,000. Jane Street Group LLC purchased a new stake in shares of Ultralife during the 4th quarter valued at $75,000. Finally, Jones Financial Companies Lllp lifted its holdings in shares of Ultralife by 1,428.7% during the 1st quarter. Jones Financial Companies Lllp now owns 15,287 shares of the technology company’s stock worth $82,000 after acquiring an additional 14,287 shares during the last quarter. Institutional investors own 30.68% of the company’s stock.

Analysts Set New Price Targets

Separately, Weiss Ratings cut shares of 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 MarketBeat, the stock 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.