CEO Tom McClelland set a $150M revenue target and 50% gross margin goal by fiscal 2029, backed by a record $111M funded backlog. Shares rose 4.2% after-hours.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Frequency Electronics (FEIM) told analysts Thursday it aims to hit at least $150 million in annual revenue and a 50% gross margin by fiscal 2029, backed by a record $111 million funded backlog. The target implies roughly 70% revenue growth from the $88.3 million the company reported for fiscal 2026.
CEO Tom McClelland said on the Q4 earnings call that the backlog, which rose 22% from a year earlier, gives the company three years of visible demand. He attributed the growth to rising orders for space-qualified timing systems and defense-related frequency generation equipment. The gross margin goal of 50% compares with 42.5% in fiscal 2026, a level the company said it can reach as production scales and component costs stabilize.
McClelland also said Frequency Electronics is investing in automated test equipment and expanded clean-room capacity at its Mitchell Field, New York facility. The company ended fiscal 2026 with $26.4 million in cash and no debt, providing flexibility to fund the expansion internally.
Shares rose 4.2% in after-hours trading following the call.
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