RFIL Earnings Prediction
The chart below shows how RFIL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RFIL sees a -0.04% change in stock price 10 days leading up to the earnings, and a -2.84% change 10 days following the report. On the earnings day itself, the stock moves by +1.45%. This data can give you a slight idea of what to expect for the next quarter's release.
RFIL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
19.20M
42.67%
4.05%
Gross Margin
29.78%
21.35%
-4.98%
Operating Margin
0.29%
101.87%
-44.23%
Net Margin
-1.28%
-87.35%
-0.78%
EPS
-0.02
-84.62%
-0.00%
No Data Available
RFIL Earnings Analysis
RF Industries Ltd Corporation (RFIL.O) Earnings Conference Call
Positive
Sales Performance Surge: RF Industries reported a strong performance in Q1 2025 with net sales of $19.2 million, a 42.7% increase from $13.5 million in Q1 2024.
Gross Profit Margin Achievement: The company achieved a gross profit margin of 29.8%, aligning with their target of 30%.
Consistent Operating Profitability: For the second consecutive quarter, RF Industries delivered an operating profit, demonstrating their commitment to improved profitability despite market challenges.
Earnings Beat Expectations: Non-GAAP earnings per share were reported at $0.04, exceeding expectations of $0.03, and adjusted EBITDA reached $867,000, a significant improvement from a loss of $1.1 million in Q1 2024.
Strong Revenue Backlog: The company ended the quarter with a backlog of $15.2 million, indicating strong future revenue potential.
Customer Base Diversification: RF Industries is diversifying its customer base, with a growing portion of revenue coming from non-wireless carrier customers, enhancing resilience against market fluctuations.
Aerospace Contract Win: The company won a significant contract with a leading aerospace company, showcasing their capability to meet high-quality standards in new markets.
Wireless Network Investment Strategy: RF Industries anticipates increased spending on wireless network densification and small cell deployments in 2025, positioning them to benefit from these trends.
Sales Strategy Enhancement: The company has refined its go-to-market strategy and expanded its sales team, enhancing business development efforts and customer engagement.
Balance Sheet Strength: RF Industries is focused on maintaining a strong balance sheet, with a current ratio of approximately 1.7:1 and a decrease in inventory levels, reflecting improved procurement processes.
Negative
Net Loss Analysis: Net loss of $245,000 or $0.02 per diluted share, indicating ongoing financial challenges despite revenue growth.
Modest Operating Income Improvement: Operating income was only $56,000, a modest improvement from a significant operating loss of $2.1 million reported last year, suggesting profitability remains a concern.
Inventory Decline Analysis: Inventory levels decreased to $13.5 million from $18 million last year, indicating potential issues with demand forecasting or sales performance.
Debt Concerns and Stability: The company has borrowed $8.1 million from its revolving credit facility, raising concerns about debt levels and financial stability.
Sales Growth vs. Profitability: Despite a 42.7% increase in sales, the company still reported a net loss, highlighting that revenue growth has not yet translated into overall profitability.
RFIL FAQs
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RFIL Earning Call Sentiment
RF Industries, Ltd. (NASDAQ:RFIL) Q1 2025 Earnings Call Transcript
RFIL.O
1.07%Positive
RFI's earnings call highlights strong financial performance, with significant revenue growth and improved margins. The strategic focus on product offering transformation and market expansion is promising. Despite some risks, like market conditions and reliance on Tier 1 carriers, the company's operational improvements and positive guidance for fiscal 2025 indicate a positive outlook. The Q&A section supports this, showing optimism in sales growth and margin improvement. However, the lack of a shareholder return plan slightly tempers the sentiment. Overall, the stock is likely to experience a positive movement in the short term.
