Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - RF Industries, Ltd. (RFIL) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2][9] Group 2: Earnings Growth - Historical EPS growth for RF Industries is 46%, but projected EPS growth for this year is expected to be 333.3%, significantly outperforming the industry average of -14% [4] Group 3: Asset Utilization - RF Industries has an asset utilization ratio (sales-to-total-assets ratio) of 0.88, indicating that the company generates $0.88 in sales for every dollar in assets, compared to the industry average of 0.49 [6] - The company is also projected to achieve sales growth of 11.7% this year, while the industry average is -0.9% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for RF Industries, with the Zacks Consensus Estimate for the current year increasing by 175% over the past month [7] Group 5: Investment Potential - RF Industries has earned a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [9]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, it requires strong fundamentals to maintain that momentum [1][2]. Group 1: Stock Performance - RF Industries, Ltd. (RFIL) has shown a solid price increase of 22.5% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - Over the last four weeks, RFIL's stock price has increased by 31.2%, suggesting that the upward trend is still intact [5]. - RFIL is currently trading at 96% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - RFIL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like RFIL that have sufficient fundamental strength to sustain their recent uptrends [3]. - The article suggests that there are several other stocks passing through the "Recent Price Strength" screen, indicating potential investment opportunities [8].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant risk and volatility [1] Group 1: Company Overview - RF Industries, Ltd. (RFIL) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Historical EPS growth for RF Industries stands at 46%, but projected EPS growth for this year is expected to be 333.3%, significantly outperforming the industry average of -14.8% [4] Group 3: Asset Utilization - RF Industries has an asset utilization ratio (sales-to-total-assets ratio) of 0.87, indicating that the company generates $0.87 in sales for every dollar in assets, compared to the industry average of 0.51, showcasing higher efficiency [5] Group 4: Sales Growth - The company's sales are projected to grow by 11.7% this year, while the industry average is expected to decline by 1.4%, highlighting RF Industries' strong sales growth potential [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for RF Industries have been revised upward, with the Zacks Consensus Estimate increasing by 175% over the past month, indicating positive momentum [8] Group 6: Investment Positioning - RF Industries has achieved a Zacks Rank of 2 and a Growth Score of A, positioning it well for potential outperformance in the growth stock category, making it an attractive option for growth investors [10]

Financial Performance - Net sales for the fiscal year ended October 31, 2024, were $64.9 million, a decrease of 10.1% or $7.3 million compared to $72.2 million in 2023[208]. - Gross profit for fiscal 2024 decreased by $0.6 million to $18.9 million, while gross margins increased to 29.1% from 27.1% in fiscal 2023[209]. - The consolidated net loss for fiscal 2024 was $6.6 million, with a fully diluted loss per share of $0.63, compared to a net loss of $3.1 million and a loss per share of $0.30 in fiscal 2023[214]. - The provision for income taxes was $2.8 million, resulting in an effective tax rate of 73.5% for fiscal 2024[213]. Segment Performance - For the fiscal year ended October 31, 2024, the Custom Cabling segment accounted for 42% of total sales, while the RF Connector segment accounted for 58%[197]. - The Custom Cabling segment recorded a pretax income of $1.1 million, while the RF Connector segment incurred a pretax loss of $3.7 million in fiscal 2024[212]. - The Custom Cabling segment's growth was driven by increased Direct Air Cooling sales and small cell deployment[212]. Assets and Liabilities - As of October 31, 2024, the company reported total assets of $71.0 million, a decrease from $82.3 million in 2023[199]. - As of October 31, 2024, the company had a working capital of $11.0 million, down from $23.5 million in 2023, primarily due to changes in debt classification[201]. - The company recorded a valuation allowance of $3.8 million against its deferred tax assets as of October 31, 2024, reflecting an increase of $3.8 million from the previous year[192][193]. Cash Flow and Expenditures - The company generated $3.2 million in cash from operating activities for the fiscal year, despite a net loss of $6.6 million[203]. - The company spent $0.7 million on capital expenditures and drew $7.2 million on the EBC Revolving Loan Facility as of October 31, 2024[204]. Backlog and Future Plans - The company had a backlog of $19.5 million as of October 31, 2024, an increase from $16.1 million in the previous year, driven by Direct Air Cooling and small cell requirements[202]. - The company plans to implement cost-cutting measures and consolidate facilities to improve operating cash flow and liquidity[200]. Cost Management - Engineering expenses decreased by $0.4 million to $2.8 million in fiscal 2024, primarily due to advances in product development[210]. - Selling and general expenses decreased by $1.3 million to $18.9 million, representing 29.2% of sales, compared to 28.0% in fiscal 2023[211]. - The company experienced increased manufacturing costs due to rising labor and raw material prices, influenced by inflation and supply shortages[215]. - The company implemented cost-saving initiatives, including restructuring and reduced general office expenses, contributing to lower selling and general expenses[211]. Valuation and Impairment - The discount rates used in the DCF model for the Microlab reporting unit were 17.0% and 18.0% as of October 31, 2024, and April 30, 2024, respectively[188]. - The Microlab reporting unit had an estimated fair value exceeding its carrying value by 8.9% as of October 31, 2024, indicating no impairment was recorded[190].

Financial Data and Key Metrics Changes - Fourth quarter net sales reached $18.5 million, a 16% increase from $15.9 million in the same quarter last year and a 10% sequential increase from $16.8 million in the third quarter [10] - Gross profit margin for the fourth quarter increased to 31.3%, up from 28.4% year-over-year, reflecting cost savings and operational efficiencies [31] - Adjusted EBITDA for the fourth quarter was $908,000, compared to a negative adjusted EBITDA of $108,000 for Q4 2023 [33] - The company ended the year with a net loss of $238,000, an improvement from a net loss of $851,000 year-over-year [33] Business Line Data and Key Metrics Changes - The company shipped a significant amount of hybrid fiber products during the fourth quarter, clearing out older inventory and resulting in a fresher backlog [11][12] - The focus on transforming into a full solutions provider has led to increased demand for products like small cells and DAC thermal cooling systems [13][16] Market Data and Key Metrics Changes - The company is seeing opportunities for growth in the Tier 1 wireless carrier ecosystem, driven by pent-up demand for 4G and 5G connectivity [18] - The return of stadium and venue builds is expected to create a market worth $42 billion by 2029, providing new opportunities for innovative interconnect solutions [21][22] Company Strategy and Development Direction - The company aims to achieve at least a 10% adjusted EBITDA margin by reviewing its production and fulfillment operations [14][15] - A strategic focus on sales growth and profit improvement is prioritized as the company enters fiscal year 2025 [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2025, expecting revenue to be better than in 2024, with a forecast for Q1 to align with Q4's revenue of $18.5 million [23][24] - The company believes it is well-positioned for future growth due to strengthened product offerings and improved relationships with key customers [16][22] Other Important Information - The company successfully reduced its debt from $14.1 million to just above $8 million over the fiscal year [11][36] - Inventory levels decreased to $14.7 million from $18.7 million last year, reflecting improvements in procurement and supply chain processes [37] Q&A Session Summary Question: What contributed to the revitalized top line? - The significant shipment of hybrid fiber products from backlog and a general recovery across the board were key contributors [45][46] Question: Which products are driving the product mix shift? - Increased demand for small cell and DAC thermal cooling products, along with recovery in stadium and venue projects, are driving the shift [55] Question: Can you provide details on the redesigning operations infrastructure? - Specific dollar amounts on expected savings were not disclosed, but the focus is on achieving a stronger adjusted EBITDA margin [57][58] Question: What is the current mix of business driven by CapEx versus operating maintenance budgets? - The company aims for a more balanced mix, potentially reaching a 50-50 breakdown between CapEx and OpEx in the carrier space [79][80] Question: What changes have been made to the sales force? - The company has added experienced talent with existing relationships in key markets, focusing on targeted growth without significantly increasing expenses [84][88]

Fiscal 2024 Highlights and Operating Results: Exhibit 99.1 FOR IMMEDIATE RELEASE RF Industries Reports Fourth Quarter and Fiscal Year 2024 Financial Results SAN DIEGO, CA, January 16, 2025 – RF Industries, Ltd, (NASDAQ: RFIL), a national manufacturer and marketer of interconnect products and systems, today announced fourth quarter and fiscal year 2024 financial results for the fiscal year ended October 31, 2024. Fourth Quarter Fiscal 2024 Highlights and Operating Results: See "Note Regarding Use of Non-GAAP ...

RF Industries, Ltd. (RFIL) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.06. This compares to loss of $0.08 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -116.67%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced earnings of $0.01, delivering a surprise of 133.33%. Over the last four quarters, the company has surpasse ...

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Most Powerful Force Impacting Stock Prices Harnessing the Power of Earnings Estimate Revisions Earnings Estimate Revisions for RF Industries Bottom Line The upgrade of RF Industries to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stoc ...

RF Industries, Ltd. (NASDAQ:RFIL) Q2 2024 Earnings Conference Call June 13, 2024 4:30 PM ET Company Participants Margaret Boyce - Investor Relations Rob Dawson - Chief Executive Officer Ray Bibisi - President and Chief Operating Officer Peter Yin - Chief Financial Officer Conference Call Participants Josh Nichols - B. Riley Operator Greetings. Welcome to RF Industries Second Quarter Fiscal 2024 Financial Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer ...

RF Industries, Ltd. (RFIL) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.03 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced a loss of $0.06, delivering no surprise. Over the last four quarters, the comp ...