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
RFIL Earnings Analysis
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
How does RFIL typically perform around its earnings report dates?
RFIL's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -0.04% change leading up to the report and a -2.84% change in the 10 days following the release.
Is RF Industries Ltd (RFIL) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
RFIL Earning Call Sentiment
RF Industries, Ltd. (NASDAQ:RFIL) Q1 2025 Earnings Call Transcript
RFIL.O
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