OCC Fiscal Q3 2026 Earnings Call: Sales Rise 22%, Margin Expands
Source Tradingkey
Key Takeaways
- Optical Cable Corporation (OCC) reported fiscal Q3 2026 net sales of $24.3 million, up 22% year over year, driven largely by enterprise, data center and specialty markets.
- Gross profit increased 43.9% to $9.1 million. Gross margin expanded to 37.4% from 31.7%, reflecting higher production volumes, manufacturing efficiencies and operating leverage.
- Net income reached $1.9 million, or $0.21 per basic and diluted share, compared with $302,000, or $0.04 per share, in fiscal Q3 2025.
- Backlog and forward load rose to $13.5 million at July 31, 2026, from $13.3 million at April 30 and $7.3 million at October 31, 2025. Most is expected to ship within two to three quarters.
- Management maintained its view that the second half of fiscal 2026 would be strong and reported continued strength in sales and demand during August. The company did not provide fiscal 2027 margin guidance.
- Optical fiber shortages remain the main constraint on manufacturing expansion, although management said they should not prevent continued strong top-line growth during the remainder of fiscal 2026.
Key Financial Data
| Metric | Fiscal Q3 2026 | Fiscal Q3 2025 | Change |
|---|---|---|---|
| Net sales | $24.3 million | $19.9 million | +22.0% |
| Gross profit | $9.1 million | $6.3 million | +43.9% |
| Gross margin | 37.4% | 31.7% | +5.7 percentage points |
| SG&A expenses | $7.0 million | $5.7 million | Increase |
| SG&A as a percentage of sales | 28.7% | 28.8% | Broadly stable |
| Net income | $1.9 million | $302,000 | Increase |
| Basic and diluted EPS | $0.21 | $0.04 | Increase |
| Metric | First nine months of fiscal 2026 | Prior-year period | Change |
|---|---|---|---|
| Net sales | $62.9 million | $53.2 million | +18.3% |
| Gross profit | $22.1 million | $16.3 million | +35.5% |
| Gross margin | 35.0% | 30.6% | +4.4 percentage points |
| SG&A expenses | $18.8 million | $16.9 million | Increase |
| Net income (loss) | $2.5 million | $(1.5) million | Returned to profit |
| Basic and diluted EPS | $0.28 | $(0.19) | Improved |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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