Universal Electronics (NASDAQ:UEIC) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Universal Electronics (NASDAQ:UEIC) posted its quarterly earnings data on Thursday. The technology company reported $0.17 earnings per share (EPS) for the quarter, topping 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 positive return on equity of 2.70% and a negative net margin of 4.57%.

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 Trading Down 6.2%

Universal Electronics stock traded down $0.32 during mid-day trading on Thursday, hitting $4.86. The company had a trading volume of 135,446 shares, compared to its average volume of 57,959. The stock’s 50 day moving average price is $5.10 and its two-hundred day moving average price is $4.48. Universal Electronics has a 12 month low of $2.69 and a 12 month high of $5.99. The company has a market capitalization of $62.65 million, a PE ratio of -4.19 and a beta of 1.30.

Wall Street Analyst Weigh In

A number of analysts have recently commented on UEIC shares. Weiss Ratings restated a “sell (d-)” rating on shares of Universal Electronics in a report on Friday, September 18th. Zacks Research upgraded shares of Universal Electronics to a “hold” rating in a research note on Monday, October 5th. Wall Street Zen cut shares of Universal Electronics from a “strong-buy” rating to a “buy” rating in a research report on Sunday. Finally, Rosenblatt Securities reissued a “neutral” rating and set a $5.00 price objective on shares of Universal Electronics in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $4.25.

Insider Activity

In related news, major shareholder Toro 18 Holdings Llc sold 200,000 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $5.22, for a total value of $1,044,000.00. Following the transaction, the insider owned 1,344,647 shares in the company, valued at $7,019,057.34. The trade was a 12.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last ninety days, insiders sold 442,815 shares of company stock valued at $2,201,304. 17.10% of the stock is owned by insiders.

About Universal Electronics

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.