Frequency Electronics, Inc. (NASDAQ:FEIM) Overview: A Detailed Analysis

• Craig-Hallum initiated coverage on NASDAQ:FEIM with a "Buy" rating, indicating a positive outlook despite recent challenges.
• FEIM reported a significant decline in stock price by 16% post-earnings release for the quarter ending July 31, 2025, contrasting with the S&P 500's growth.
• The company's fiscal first quarter 2026 results showed a sharp decrease in net income and revenue, yet it remains optimistic due to a strong backlog and a $20 million buyback plan.

Frequency Electronics, Inc. (NASDAQ:FEIM) is a company that specializes in precision time and frequency control products. These products are essential for various applications, including satellite communications and defense systems. The company faces competition from other firms in the electronics and communications sectors. Despite recent challenges, Craig-Hallum has initiated coverage on FEIM with a "Buy" rating, reflecting a positive outlook.

On September 18, 2025, Craig-Hallum's bullish stance on FEIM came when the stock was priced at approximately $27.64. However, the company has faced a significant decline in its stock price, dropping 16% after releasing its earnings report for the quarter ending July 31, 2025. This decline contrasts with the S&P 500 index, which grew by 1.4% during the same period.

FEIM's fiscal first quarter 2026 results showed a net income of 7 cents per diluted share, a 72% decrease from 25 cents per share in the same quarter the previous year. Revenue also fell to $13.8 million, down 8.4% from $15.1 million in the prior year. This decline in revenue was accompanied by a sharp decrease in net income, which plummeted to $0.6 million from $2.4 million, a nearly 74% reduction.

Despite these financial challenges, FEIM remains optimistic due to a strong backlog, new contract bids, and a $20 million buyback plan. The stock is currently priced at $31.38, reflecting a significant increase of 14.80% with a change of $4.05. Over the past year, the stock has reached a high of $34.84 and a low of $11.71, with a market capitalization of approximately $305.9 million.