Frequency Electronics, Inc. (FEIM)

In the past six months, Frequency Electronics, Inc.'s stock price has been influenced by several key events. In Q1 FY2026, the company reported a revenue drop to $13.8 million, down 8.6% compared to the prior year, primarily due to delayed customer-driven program schedules and some revenue being recognized in the previous quarter. In Q2 FY2026, Frequency Electronics announced strong performance with revenue of approximately $17.1 million, up 24% sequentially. In January 2026, the company was awarded a contract valued at approximately $9.2 million to supply precision time and frequency systems for a geostationary environmental satellite program. Also in January 2026, follow-on contracts valued at approximately $6 million were announced from a major aerospace company for precision "g" compensated Oven-controlled Quartz Oscillators (OCXO) for US Government software-defined radio systems. A new $20 million share repurchase authorization was announced. While some analysts lowered revenue and EPS estimates after the Q1 miss, the consensus price target still rose, implying the downgrade was seen as a temporary blip. Overall, the company has a "Buy" consensus rating from analysts.

Demand for Frequency Electronics, Inc.'s products and services is not characterized by strict calendar-based seasonality but rather by project-based cycles and government funding allocations. The company's revenue can experience short-term volatility due to "customer-driven program schedules" and "deferred government revenues." The majority of FEIM's revenue is derived from U.S. government contracts, making it highly dependent on these cycles and contract awards. The company's substantial backlog, which has seen recent increases, helps provide some forward revenue visibility.

Frequency Electronics, Inc. (FEIM), founded in 1961 and located in Mitchel Field, New York, specializes in high-precision time and frequency control products for microwave integrated circuit applications, operating in the Technology sector, specifically in the Communication Equipment industry. The FEI-NY segment provides precision time and frequency control products for communication satellites, terrestrial cellular telephone, and other ground-based telecommunication stations, as well as components and systems for the U.S. military. The FEI-Zyfer segment focuses on global positioning system (GPS) technologies for secure communications, government and commercial locator applications, and the sale and support of wireline telecommunications products. The company is also actively pivoting into emerging areas such as quantum sensing, small-satellite constellations, GPS-denied navigation, hypersonics, and human-machine interfaces.

Frequency Electronics, Inc. has a global reach, marketing its products directly and through independent sales representative organizations in the United States, Europe, and Asia. Its operational facilities include FEI Government Systems Inc. in Mitchel Field, New York; FEI-Zyfer Inc. in Garden Grove, California; and FEI-Elcom Tech Inc. in Northvale, New Jersey.

Frequency Electronics maintains a strong brand reputation, particularly within its specialized markets. The company was recognized by Northrop Grumman Corporation as one of its top supplier partners during their Supplier Excellence Awards in March 2025. Frequency Electronics has a positive news sentiment score of 1.12, which is higher than the average for Computer and Technology companies. The company's reports have an aggregate usefulness score of 4.8 based on 109 reviews, indicating a generally positive perception.

Frequency Electronics, Inc. (FEIM) has a diverse ownership structure. Institutional investors hold approximately 67.81% of the company's stock. Major institutional owners include Edenbrook Capital, LLC, Vanguard Group Inc, BlackRock, Inc., Segall Bryant & Hamill, Llc, Dimensional Fund Advisors Lp, Goldman Sachs Group Inc, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, Renaissance Technologies Llc, UBS Group AG, and Portolan Capital Management, LLC. Individual insiders own about 6.29% of the shares, with Russell Sarachek being a notable individual insider. Retail investors hold a significant portion, approximately 74.12% according to some data.