We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RFIL expects Q4 sales to match or exceed $24M reported in Q3, with backlog at $19.8M.
DAC sales are expected to top $10M and keep accelerating as use expands beyond wireless customers.
RF Industries sees small cells building in Q4'26 and FY27 as delayed deployments begin accelerating.
RF Industries, Ltd. (RFIL - Free Report) used its third-quarter fiscal 2026 earnings call to frame record revenues as evidence that its shift toward higher-value solutions is producing stronger operating leverage.
CEO Robert Dawson said that fiscal fourth-quarter sales should be roughly the same as or above the third-quarter reported level of $24 million. Backlog stood at $19.8 million as of the call date, giving management visibility into the year-end.
RFIL Expects Q4 Sales at or Above Q3 Actual
Dawson added that the strong second half is unfolding as management expected, with the fiscal fourth quarter positioned to match or exceed third-quarter sales.
CFO Peter Yin said that fiscal third-quarter bookings were $22.5 million, producing a book-to-bill ratio of 0.94X. Backlog was $18.6 million as of July 31 before rising to $19.8 million.
RF Industries Shows Operating Leverage
Revenues of $24 million topped the Zacks Consensus Estimate of $23.30 million, while non-GAAP earnings of $0.19 per share marginally missed the consensus estimate of $0.20.
Yin said that the gross margin was 35.6%, the operating margin improved to 7.3% from 3.6% a year earlier and the adjusted EBITDA margin was 11.1%, above management's 10% long-term goal.
Dawson tied the profitability improvement to higher-value custom cabling and integrated systems, which carry more engineering content and broader project scope than traditional component sales.
RF Industries, Ltd. Price, Consensus and EPS Surprise
President and COO Ray Bibisi said that customer contributions were spread across aerospace and defense, telecommunications, industrial and distribution channels, with new contributors emerging across end markets.
Dawson said that the broader platform now serves applications spanning aerospace, edge data centers, AI infrastructure, industrial manufacturing, medical imaging, transportation and public safety.
A B. Riley Securities analyst asked about carrier spending into fourth-quarter fiscal 2026 and fiscal 2027. Dawson said that projections for wireless carrier capital spending remain broadly flat, but RFIL does not tie its opportunity directly to carrier CapEx because its portfolio also reaches other applications and operating budgets.
RF Industries Sees DAC Scaling Further
A Lake Street Capital Markets analyst asked about the DAC outlook. Dawson has said that DAC has grown from an immaterial contributor several years ago to millions of dollars in quarterly sales.
Dawson informed that management expects DAC sales to exceed $10 million and continue accelerating, describing the product area as a major growth engine with use expanding beyond traditional wireless customers.
A B. Riley Securities analyst also asked about NEMA 4 and edge opportunities. Dawson said that deployment schedules are expected to accelerate in fiscal 2027, with more meaningful contributions from wireline, edge data center, telco and edge AI applications.
RFIL Expects Small Cells to Improve Into 2027
A Lake Street Capital Markets analyst asked whether first-half small cell disruptions were behind the company. Dawson said that activity began moving as expected in the fiscal third quarter and should build further in fourth-quarter 2026 and fiscal 2027.
He acknowledged that small cell revenues remain below management's expectations at the start of the year because deployments were delayed, but said that the business is now accelerating.
The analyst also pressed on a large aerospace customer. Dawson said that the relationship is reinforced by design, engineering and technical involvement, while order placement and fulfillment can still shift between periods.
RF Industries Prioritizes Execution
Bibisi said that RF Industries combined engineering and product line management under one structure in Interconnect and Integrated Systems to speed decisions, product launches, and accountability for commercial outcomes.
He also said that the AI initiative is starting in sales and customer-facing functions, with planned expansion into engineering, operations and supply chain. Dawson closed by emphasizing disciplined execution, customer service and long-term value creation.
RFIL's Zacks Signals Favor Momentum & Value
RFIL currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of D, Momentum Score of A and VGM Score of B. Under the Zacks framework, A and B Style Scores are more favorable, though the strongest combinations pair them with Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks. You can see the complete list of today’s Zacks #1 Rank stocks here.
The current mix shows stronger momentum and value characteristics than growth, while the Zacks Rank remains at Hold. The Zacks Rank can change as earnings estimates are revised after the just-reported results, so the present rating is a current signal rather than a fixed outlook.
View the Zacks #1 Rank List
Image: Bigstock
RF Industries' Q3 Earnings Call Centers on Q4 Sales & DAC Growth
Key Takeaways
RF Industries, Ltd. (RFIL - Free Report) used its third-quarter fiscal 2026 earnings call to frame record revenues as evidence that its shift toward higher-value solutions is producing stronger operating leverage.
CEO Robert Dawson said that fiscal fourth-quarter sales should be roughly the same as or above the third-quarter reported level of $24 million. Backlog stood at $19.8 million as of the call date, giving management visibility into the year-end.
RFIL Expects Q4 Sales at or Above Q3 Actual
Dawson added that the strong second half is unfolding as management expected, with the fiscal fourth quarter positioned to match or exceed third-quarter sales.
CFO Peter Yin said that fiscal third-quarter bookings were $22.5 million, producing a book-to-bill ratio of 0.94X. Backlog was $18.6 million as of July 31 before rising to $19.8 million.
RF Industries Shows Operating Leverage
Revenues of $24 million topped the Zacks Consensus Estimate of $23.30 million, while non-GAAP earnings of $0.19 per share marginally missed the consensus estimate of $0.20.
Yin said that the gross margin was 35.6%, the operating margin improved to 7.3% from 3.6% a year earlier and the adjusted EBITDA margin was 11.1%, above management's 10% long-term goal.
Dawson tied the profitability improvement to higher-value custom cabling and integrated systems, which carry more engineering content and broader project scope than traditional component sales.
RF Industries, Ltd. Price, Consensus and EPS Surprise
RF Industries, Ltd. price-consensus-eps-surprise-chart | RF Industries, Ltd. Quote
RFIL Broadens Demand Beyond Wireless Carriers
President and COO Ray Bibisi said that customer contributions were spread across aerospace and defense, telecommunications, industrial and distribution channels, with new contributors emerging across end markets.
Dawson said that the broader platform now serves applications spanning aerospace, edge data centers, AI infrastructure, industrial manufacturing, medical imaging, transportation and public safety.
A B. Riley Securities analyst asked about carrier spending into fourth-quarter fiscal 2026 and fiscal 2027. Dawson said that projections for wireless carrier capital spending remain broadly flat, but RFIL does not tie its opportunity directly to carrier CapEx because its portfolio also reaches other applications and operating budgets.
RF Industries Sees DAC Scaling Further
A Lake Street Capital Markets analyst asked about the DAC outlook. Dawson has said that DAC has grown from an immaterial contributor several years ago to millions of dollars in quarterly sales.
Dawson informed that management expects DAC sales to exceed $10 million and continue accelerating, describing the product area as a major growth engine with use expanding beyond traditional wireless customers.
A B. Riley Securities analyst also asked about NEMA 4 and edge opportunities. Dawson said that deployment schedules are expected to accelerate in fiscal 2027, with more meaningful contributions from wireline, edge data center, telco and edge AI applications.
RFIL Expects Small Cells to Improve Into 2027
A Lake Street Capital Markets analyst asked whether first-half small cell disruptions were behind the company. Dawson said that activity began moving as expected in the fiscal third quarter and should build further in fourth-quarter 2026 and fiscal 2027.
He acknowledged that small cell revenues remain below management's expectations at the start of the year because deployments were delayed, but said that the business is now accelerating.
The analyst also pressed on a large aerospace customer. Dawson said that the relationship is reinforced by design, engineering and technical involvement, while order placement and fulfillment can still shift between periods.
RF Industries Prioritizes Execution
Bibisi said that RF Industries combined engineering and product line management under one structure in Interconnect and Integrated Systems to speed decisions, product launches, and accountability for commercial outcomes.
He also said that the AI initiative is starting in sales and customer-facing functions, with planned expansion into engineering, operations and supply chain. Dawson closed by emphasizing disciplined execution, customer service and long-term value creation.
RFIL's Zacks Signals Favor Momentum & Value
RFIL currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of D, Momentum Score of A and VGM Score of B. Under the Zacks framework, A and B Style Scores are more favorable, though the strongest combinations pair them with Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks. You can see the complete list of today’s Zacks #1 Rank stocks here.
The current mix shows stronger momentum and value characteristics than growth, while the Zacks Rank remains at Hold. The Zacks Rank can change as earnings estimates are revised after the just-reported results, so the present rating is a current signal rather than a fixed outlook.