Frequency Electronics (NASDAQ:FEIM) shares rose 30.5% in premarket trading after the company reported fiscal first-quarter 2027 revenue and earnings above analyst expectations.
Revenue for the quarter ended July 31, 2026, increased 70% year on year to a company record of $23.5 million. Revenue was also 52% higher sequentially.
Adjusted earnings per share were $0.41, compared with the analyst consensus estimate of $0.29 cited in the source.
Gross margin reached 45.8%, while operating margin was 22%.
Funded Backlog Reaches Record $129 Million
Frequency Electronics reported a funded backlog of $129 million at the end of the quarter, representing a company record and increases of 82% year on year and 16% sequentially.
The company’s book-to-bill ratio was 1.76:1. The source cited demand related to satellite, US government and defence programmes.
Management said it had increased confidence in the company’s ability to meet or exceed $150 million in annual revenue by fiscal 2029. This remains a management target rather than a confirmed future result.
The company also said a customer associated with a secure military communications contract had requested an increase of more than 50% in monthly production.
Shares Rise Following Fiscal Q1 Results
Frequency Electronics’ results were released on the evening of September 10. Shares subsequently rose 30.5% in premarket trading and approached their 52-week high of $80.60, according to the source.
The broader US equity market had gained around 0.6%, with the S&P 500, Dow Jones and Nasdaq moving higher after four consecutive declining sessions.
The source also cited higher Treasury yields, oil prices and geopolitical uncertainty as factors affecting broader market conditions.
Frequency Electronics was described as having no debt following a capital raise completed in July.