Ultralife Earnings: Here’s Why the Stock is Rising Now

Ultralife Corp. (NASDAQ:ULBI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5%.

Ultralife Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.08 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Decreased 6.6% to $29.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ultralife Corp. reported adjusted EPS income of $0.08 per share. By that measure, the company beat the mean analyst estimate of $0.04. It beat the average revenue estimate of $27.5 million.

Quoting Management: “Ultralife’s fourth quarter results demonstrate the earnings power of our business model. Although revenue was flat year-over-year with a sizeable increase in Communications Systems sales neutralized by ongoing weakness in U.S. government spending for Battery & Energy Products, we generated gross margin above 30% for the second consecutive quarter and operating margin of 8%, a 200 basis point improvement. We achieved these margin gains while continuing to invest in sales and new product development. In addition, we continued to drive working capital efficiency, generating free cash flow and ending the year with cash of $10 million,” said Michael D. Popielec, Ultralife’s president and chief executive officer.

Key Stats (on next page)…

Revenue increased 11.92% from $26.18 million in the previous quarter. EPS decreased 11.11% from $0.09 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. For the current year, the average estimate has moved down from a loss of $0.17 to a loss of $0.20 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)