Ultralife (NASDAQ:ULBI) Announces Quarterly Earnings Results, Hits Estimates

Ultralife (NASDAQ:ULBI) released its earnings results on Friday. The technology company reported $0.19 earnings per share (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 analyst estimates 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 Trading Up 19.4%

Shares of NASDAQ:ULBI traded up $1.03 during mid-day trading on Friday, hitting $6.35. The company had a trading volume of 99,851 shares, compared to its average volume of 31,200. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.56 and a quick ratio of 1.23. Ultralife has a one year low of $4.90 and a one 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 market capitalization of $105.79 million, a PE ratio of -12.70 and a beta of 0.80.

Insider Buying and Selling

In related news, Director Bradford T. Whitmore purchased 67,302 shares of Ultralife stock in a transaction 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 acquisition, the director owned 2,050,637 shares of the company’s stock, valued at $13,964,837.97. This trade represents a 3.39% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders have acquired 108,878 shares of company stock valued at $714,928 in the last ninety days. Company insiders own 42.90% of the company’s stock.

Institutional Trading of Ultralife

Large investors have recently made changes to their positions in the company. XTX Topco Ltd increased its holdings in Ultralife by 19.9% during the 4th quarter. XTX Topco Ltd now owns 15,456 shares of the technology company’s stock worth $88,000 after purchasing an additional 2,569 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Ultralife by 30.7% in the fourth quarter. Bank of America Corp DE now owns 12,067 shares of the technology company’s stock valued at $90,000 after purchasing an additional 2,836 shares in the last quarter. Lazard Asset Management LLC boosted its position in shares of 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 buying an additional 5,247 shares during the last quarter. Empowered Funds LLC purchased a new position in shares of Ultralife during the fourth quarter valued at approximately $44,000. Finally, Prelude Capital Management LLC bought a new stake in Ultralife during the third quarter worth $71,000. 30.68% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

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

About Ultralife

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.