Frequency Electronics (FEIM) Soars After Record Revenue

Frequency Electronics, Inc. (FEIM) announced record revenue for the first quarter of fiscal 2027, revealing a 70% increase year-over-year and a 52% rise sequentially. The company expects to hit its target of $150 million in annual revenue by fiscal 2029, which ends April 30, 2029. With a funded backlog of $129 million, up 82% year-over-year and 16% sequentially, FEIM sees future growth supported by this backlog, expanding order book, and larger end markets.

The company also reported improved profitability, with gross margin at 46% and operating margin surpassing 22%. Despite internal research and development expenses expected to remain below 10% of revenue, production ramp-up challenges and limited success with new defense technology companies could impact profitability. Hedge fund interest has increased, but short interest remains relatively high at 11.39%.