Universal Electronics (NASDAQ:UEIC – Get Free Report) announced its earnings results on Thursday. The technology company reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.10 by $0.07, FiscalAI reports. The business had revenue of $89.42 million during the quarter, compared to the consensus estimate of $76.97 million. Universal Electronics had a negative net margin of 4.57% and a positive return on equity of 2.70%.
Here are the key takeaways from Universal Electronics’ conference call:
- Third-quarter sales were $89.4 million, down 1.3% year over year but up 22% sequentially. Connected Home grew 13.4%, led by HVAC, while Home Entertainment fell as subscription-broadcast demand continued to decline.
- Adjusted gross margin fell to 26.3% from 29.1%, pressured by higher component costs and a stronger Chinese renminbi. The company says pricing adjustments and surcharges are expected to recover roughly three-quarters of identified inflation, with most benefits beginning in Q1 2027.
- Cost reductions helped adjusted non-GAAP operating expenses fall 20% to $19.9 million, while adjusted EPS rose to $0.17 from $0.08 a year ago. Further actions taken in August and October are expected to deliver about $2.5 million in annualized savings.
- UEI reaffirmed its fiscal 2026 adjusted EPS guidance of $0.45–$0.65, after delivering $0.42 through nine months. Cash increased $9.1 million year to date to $41.4 million, and borrowings under credit lines declined; management expects inventory to build modestly in Q4 as it secures materials for 2027.
Universal Electronics Stock Down 6.2%
Shares of NASDAQ:UEIC opened at $4.86 on Friday. The firm has a 50 day moving average of $5.11 and a 200 day moving average of $4.49. The company has a market capitalization of $62.62 million, a price-to-earnings ratio of -4.19 and a beta of 1.30. Universal Electronics has a 52 week low of $2.69 and a 52 week high of $5.99.
Insider Transactions at Universal Electronics
In other news, insider Toro 18 Holdings Llc sold 105,541 shares of the business’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $4.63, for a total value of $488,654.83. Following the completion of the transaction, the insider directly owned 1,101,832 shares of the company’s stock, valued at approximately $5,101,482.16. The trade was a 8.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Over the last quarter, insiders sold 442,815 shares of company stock worth $2,201,304. 17.10% of the stock is currently owned by company insiders.
Analysts Set New Price Targets
Several brokerages recently commented on UEIC. Wall Street Zen downgraded shares of Universal Electronics from a “strong-buy” rating to a “buy” rating in a report on Sunday, November 1st. Rosenblatt Securities restated a “neutral” rating and set a $5.00 target price on shares of Universal Electronics in a research report on Friday, August 7th. Zacks Research raised Universal Electronics to a “hold” rating in a research note on Monday, October 5th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Universal Electronics in a research note on Friday, September 18th. Three analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $4.25.
View Our Latest Stock Analysis on UEIC
Universal Electronics Company Profile
Universal Electronics Inc (NASDAQ: UEIC) designs, develops and distributes consumer electronics products and technologies that simplify the control of home entertainment and smart-home devices. Its offerings include universal remote controls, wireless home-control products, audio and video accessories, and related software and connected-device solutions.
The company serves original equipment manufacturers, subscription television providers, retailers and consumers. Its products are marketed under the One For All and other company brands, as well as through private-label and licensed-brand arrangements.
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