Overview

* Universal Electronics ( UEIC ) Q2 rev rises 8% yr/yr to $97.7 mln

* Adjusted operating income beats analyst expectations, per LSEG data

* Co to close Mexico facility to optimize footprint

Outlook

* Company expects Q3 2025 GAAP net sales of $92 mln to $102 mln

* Universal Electronics ( UEIC ) sees Q3 connected home sales of $30 mln to $34 mln

* Q3 home entertainment sales expected between $62 mln and $68 mln

* Company anticipates Q3 GAAP loss per share of $0.39 to $0.29

Result Drivers

* CONNECTED HOME GROWTH - 46% revenue growth in connected home driven by product development and footprint optimization, per COO and Interim Chief Executive Officer Richard Carnifax

* FOOTPRINT OPTIMIZATION - Decision to close Mexico facility to optimize footprint amid lower home entertainment volume

* BALANCE SHEET IMPROVEMENT - Achieved net cash position for first time since December 2021, supporting growth initiatives

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $2.40

Adjusted mln

Net

Income

Q2 Beat $2.90 $1.45

Adjusted mln mln (2

Operatin Analysts

g Income )

Q2 29.9%

Adjusted

Gross

Margin

Q2 $1 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the household electronics peer group is "hold."

* Wall Street's median 12-month price target for Universal Electronics Inc ( UEIC ) is $14.00, about 54.9% above its August 6 closing price of $6.32

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)