Ultralife (NASDAQ:ULBI) Announces Quarterly Earnings Results

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

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 Up 19.4%

Shares of NASDAQ ULBI traded up $1.03 during midday trading on Friday, reaching $6.35. 99,851 shares of the company’s stock were exchanged, compared to its average volume of 31,200. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.23 and a current ratio of 2.56. Ultralife has a 52-week low of $4.90 and a 52-week high of $8.25. The business’s fifty day moving average price is $6.01 and its two-hundred day moving average price is $6.34. The stock has a market capitalization of $105.79 million, a PE ratio of -12.70 and a beta of 0.80.

Analyst Ratings Changes

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

Insider Buying and Selling

In other Ultralife news, Director Bradford T. Whitmore acquired 67,302 shares of the stock in a transaction on Tuesday, May 26th. The stock was purchased at an average price of $6.81 per share, for a total transaction of $458,326.62. Following the purchase, the director directly owned 2,050,637 shares in the company, valued at $13,964,837.97. This trade represents a 3.39% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders bought a total of 108,878 shares of company stock valued at $714,928 over the last ninety days. Corporate insiders own 42.90% of the company’s stock.

Hedge Funds Weigh In On Ultralife

A number of institutional investors have recently made changes to their positions in ULBI. Heron Bay Capital Management bought a new position in Ultralife during the 4th quarter valued at $127,000. Bank of America Corp DE grew its holdings in Ultralife by 39.9% during the 3rd quarter. Bank of America Corp DE now owns 13,351 shares of the technology company’s stock worth $91,000 after acquiring an additional 3,810 shares in the last quarter. Man Group plc bought a new stake in shares of Ultralife in the 3rd quarter worth about $111,000. Squarepoint Ops LLC bought a new stake in shares of Ultralife in the 3rd quarter worth about $109,000. Finally, Occudo Quantitative Strategies LP acquired a new stake in shares of Ultralife in the 2nd quarter valued at about $142,000. 30.68% of the stock is owned by institutional investors and hedge funds.

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.