Ultralife Stock Pares Some Losses Following Q4 Profit Miss, Retail Banks On Future Growth

Ultralife Corp (ULBI) stock pared some losses in extended trade on Tuesday after its shares fell 6.1% in the regular session as its quarterly earnings missed Wall Street’s profit estimates.

The battery solutions firm reported an adjusted income of $131,000, or $0.01 per share, for the three months ended Dec. 31, compared with $2.9 million, or $0.18 per share, a year earlier. Analysts were expecting it to post $0.15 per share in earnings.

Its revenue fell to $43.9 million from $44.5 million a year earlier. However, Wall Street expected it to post $40 million in revenue.

Its Battery & Energy Products segment sales rose 11.7% to $39.9 million during the fourth quarter, compared to $35.7 million a year earlier, reflecting its acquisition of Electrochem.

However, organic sales for the segment fell 5.3% as a 48.1% increase in government or defense sales and a 1.6% increase in oil & gas market sales were offset by a 47.2% decrease in medical battery sales and a 4.4% decline in other industrial market sales.

Communications Systems sales declined by 55.1% to $4 million as it shipped higher orders in the year-ago quarter.

“For the fourth quarter, the contribution of Electrochem compensated for delays in the timing of expected larger orders for our Communications Systems segment and customer requests to push orders into 2025 for our Battery & Energy Products segment,” said CEO Mike Manna.

The company’s backlog and high-confidence orders stood at $102.2 million exiting 2024, compared to $78 million at the end of the third quarter.

Retail sentiment on Stocktwits jumped to ‘bullish’ (64/100) territory from ‘bearish’(27/100) a day ago, while retail chatter surged to ‘extremely high.’

One trader said even though the results were “mediocre,” the company maintained decent operating results “in what was clearly a tough environment.”

Another trader saw margin improvements for the company following the $50 million acquisition of Electrochem.

Ultralife shares have fallen nearly 33% year-to-date (YTD).

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