Precision Optics Q4 revenue jumps 42% on higher aerospace customer production

Overview

• US optical instruments maker's Q4 revenue rose 42% yr/yr to a quarterly record

• Gross margin improved to 25.3% from 13.0% a year earlier

• Company expects FY 2027 revenue to be flat to slightly higher amid temporary satellite customer pause

Outlook

• Precision Optics expects FY 2027 revenue between $30 mln and $33 mln

• Company forecasts FY 2027 Adjusted EBITDA of $(1.2) mln to $(1.7) mln

• Company anticipates stronger second half as satellite customer orders are expected to resume

Result Drivers

• AEROSPACE CUSTOMER - Record quarterly revenue attributed to increased production for top-tier aerospace customer

• MEDICAL DEVICE PRODUCTION - Continued strong production of single-use cystoscopy surgery system contributed to quarterly results

• OPHTHALMIC PROGRAM RAMP - Ramping production under $3.5 mln follow-on order for single-use ophthalmic program supported revenue growth

Company press release: ID:nGNX5YLbKk

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the medical equipment, supplies distribution peer group is "buy"

• Wall Street's median 12-month price target for Precision Optics Corporation Inc is $8.00, about 72.8% above its September 25 closing price of $4.63

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)