ULBI Earnings Prediction
The chart below shows how ULBI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ULBI sees a -4.19% change in stock price 10 days leading up to the earnings, and a +3.34% change 10 days following the report. On the earnings day itself, the stock moves by +4.99%. This data can give you a slight idea of what to expect for the next quarter's release.
ULBI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
35.69M
-9.61%
-16.96%
Gross Margin
24.32%
-1.74%
-9.59%
Operating Margin
2.13%
-60.63%
-76.62%
Net Margin
0.78%
-76.36%
-88.79%
EPS
0.02
-75.00%
-88.89%
No Data Available
ULBI Earnings Analysis
Ultralife Corporation Corporation (ULBI.O) Earnings Conference Call
Positive
Battery & Energy Sales Growth: 1. Sales Growth in Battery & Energy Products: Battery & Energy Products sales increased by 1.9% year-over-year, reaching $32.5 million, demonstrating resilience in this segment despite overall revenue challenges.
Government Defense Sales Surge: 2. Significant Increase in Government Defense Sales: Sales to government defense customers surged by 28.9%, highlighting strong demand in this critical market.
Gross Profit Increase: 3. Improved Gross Profit in Battery & Energy Products: Gross profit for the Battery & Energy Products business rose by 4.1% to $8 million, reflecting higher factory volume and operational efficiencies.
Debt Decrease Achievement: 4. Debt Reduction: The company successfully reduced its debt by $4.1 million, or 33.4%, from $12.1 million to $8.0 million, marking a substantial 68.2% reduction over the last two quarters.
Backlog Strength and Diversity: 5. Strong Backlog Position: The total backlog at the end of Q3 stood at $78 million, indicating a diverse and robust pipeline of future business opportunities.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Consolidated revenues fell to $35.7 million in Q3 2024, down from $39.5 million in Q3 2023, marking a decrease of 9.6%.
Communication Systems Sales Decline: 2. Significant Drop in Communication Systems Sales: Sales in the Communication Systems segment plummeted by 58.2%, from $7.6 million in Q3 2023 to $3.2 million in Q3 2024, primarily due to delayed shipments.
Operating Margin Decline: 3. Reduced Operating Margin: The operating margin decreased to 1.4% in Q3 2024, down from 5.4% in the same quarter last year, reflecting the impact of declining sales and increased operating expenses.
Rising Operating Expenses: 4. Increased Operating Expenses: Operating expenses rose by 7% year-over-year to $8.2 million, with a notable increase in new product development spending by 12.4%, contributing to a higher percentage of revenues at 22.9% compared to 19.3% in Q3 2023.
Net Income Decline: 5. Lower Net Income: Net income dropped to $0.3 million, or $0.02 per share, in Q3 2024, a significant decline from $1.3 million, or $0.08 per share, reported in Q3 2023.
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ULBI Earning Call Sentiment
Ultralife Corporation (ULBI) Q3 2024 Earnings Call Transcript
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00:00
00:00
ULBI.O
-2.77%Positive
The earnings call reveals concerning financial metrics, including a significant decline in revenue and gross profit, particularly in the Communication Systems segment. Operating expenses have increased, impacting profitability. Inventory management issues and integration risks from the Electrochem acquisition add to investor concerns. The Q&A section highlighted broad-based delays and vague management responses, further undermining confidence. Although debt reduction is a positive, the absence of a share repurchase program and lack of strong positive catalysts suggest a negative sentiment, likely resulting in a stock price decline of -2% to -8% over the next two weeks.
