Eltek (NASDAQ:ELTK) Releases Quarterly Earnings Results

Eltek (NASDAQ:ELTK) announced its quarterly earnings results on Tuesday. The technology company reported ($0.41) EPS for the quarter, FiscalAI reports. The firm had revenue of $11.53 million during the quarter. Eltek had a negative net margin of 6.12% and a negative return on equity of 6.69%.

Here are the key takeaways from Eltek’s conference call:

• Q2 revenue fell to $11.5 million from $12.5 million a year earlier, while the company posted a $2.7 million net loss versus $0.4 million of net income in the prior-year quarter.
• Management said demand remains strong, with a high backlog, and emphasized that the primary constraint is converting orders into production and shipments rather than a lack of customer demand.
• Gross loss improved to $1.0 million from $1.8 million in Q1, supported by higher revenue and improved average selling prices; however, roughly one-third of the backlog is tied to historical exchange rates and is expected to continue weighing on profitability.
• Eltek installed its first new plating line and began acceptance testing, expects customer qualification to start in Q3, and plans to install a second line by year-end while adding approximately 30 foreign employees to expand production capacity.
• Raw-material availability and pricing remain challenging, particularly for fiberglass-based materials, while production inefficiencies, currency effects, and underutilization of fixed costs continue to pressure margins.

Eltek Stock Down 13.3%

NASDAQ ELTK opened at $7.84 on Wednesday. The stock’s 50-day simple moving average is $8.86 and its two-hundred day simple moving average is $8.70. Eltek has a twelve month low of $7.30 and a twelve month high of $11.59. The company has a market capitalization of $52.72 million, a price-to-earnings ratio of -17.43 and a beta of 0.76.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings cut shares of Eltek from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, June 12th. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, Eltek currently has an average rating of “Sell”.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers.