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OPXS Stock Down 4% Despite Q1 Earnings Surging Y/Y on Strong Margins
OPXSOptex Systems (OPXS) ZACKS·2025-02-13 18:46

Core Insights - Optex Systems Holdings, Inc. (OPXS) reported a decline in share price of 3.9% following its earnings report for the quarter ended December 29, 2024, contrasting with a 0.6% growth in the S&P 500 index during the same period [1] - The company achieved earnings per share of 12 cents for the first quarter of fiscal 2025, a significant increase from 6 cents in the prior-year period, with revenues rising to 8.2million,markinga17.78.2 million, marking a 17.7% increase from 7 million year-over-year [2] - Gross profit increased by 26.4% year-over-year to 2.1million,withanimprovedgrossmarginof262.1 million, with an improved gross margin of 26% compared to 24.2% in the previous year, driven by a favorable product mix and higher revenue against a relatively fixed cost base [3] - Net income nearly doubled, rising 95.8% to 0.8 million compared to 0.4millionintheprior−yearquarter,whileadjustedEBITDAincreasedby500.4 million in the prior-year quarter, while adjusted EBITDA increased by 50% year-over-year to 1.1 million [4] Business Metrics - As of December 29, 2024, Optex reported a backlog of 42million,down6.742 million, down 6.7% from 45 million at the end of December 2023, attributed to the timing of customer orders, with new orders expected to contribute to fiscal 2025 revenues [5] - The company generated 2.8millioninoperatingcashflowduringthequarter,primarilyduetoincreasednetincomeandaccountsreceivablecollections,andheld2.8 million in operating cash flow during the quarter, primarily due to increased net income and accounts receivable collections, and held 2.5 million in cash at quarter-end, up from 1millionasofSeptember29,2024[6]ManagementOutlook−CEODannySchoeningemphasizedthecompany′sgrowthtrajectory,notingafour−yearcompoundedannualrevenuegrowthrateexceeding201 million as of September 29, 2024 [6] Management Outlook - CEO Danny Schoening emphasized the company's growth trajectory, noting a four-year compounded annual revenue growth rate exceeding 20%, and expressed confidence in maintaining this momentum through strong customer engagement [7] - For fiscal 2025, Optex expects revenues to exceed 38 million, supported by its backlog and anticipated new orders, with a focus on profitable and sustainable growth through operational efficiencies and customer collaboration [8] Other Developments - During the quarter, Optex continued investments in working capital and infrastructure, reflected in higher cash balances and improved accounts receivable collections [9]