GICS Sector : Technology
Universal Electronics Inc.designs, develops, manufactures, and sells pre-programmed and universal control products, audio-video (AV) accessories, and intelligent wireless security and smart home products for video services, consumer electronics, security, home automation, climate control, and home appliance markets.The company offers universal radio frequency (RF) and infrared remote controls primarily for sale to video service providers, original equipment manufacturers (OEMs), retailers, and private label customers; integrated circuits on which its software and universal device control database is embedded for sale to OEMs, video service providers, and private label customers; and software, firmware, and technology solutions that enable devices, such as televisions, set-top boxes, audio systems, smart speakers, game consoles, and other consumer electronic and smart home devices to connect and interact with home networks and interactive services to control and deliver home entertainment, smart home services, and device or system information.
Universal Electronics reported revenue of $90.6 million in Q3 2025, slightly below expectations due to temporary and structural market factors. The company's gross margin was 29.1%, and EPS was $0.08, within the guidance range. The actual EPS was significantly better than the estimated -$0.03. Connected home revenue grew 13% year-over-year, while home entertainment revenue declined 20%. The company's gross profit was $26.3 million or 29.1% of sales, benefiting from procurement savings and favorable currency rates.
Publication Date: Nov -18
The company is executing actions on cost, including the closure of the Mexico facility, achieving target milestones at the Vietnam facility, and implementing targeted reductions in force. These actions are expected to yield annualized cost savings of approximately $5 million beginning in Q4. As Rick Carnifax, Chief Operating Officer and Interim CEO, stated, "We remain committed to advancing our control and sensing technologies while directing investment toward areas that drive profitable growth."
Connected home sales grew 13% year-over-year, driven by the company's channel diversification strategy, including expanding beyond core HVAC OEM offerings and increasing its presence in the security channel. Home entertainment sales, on the other hand, declined 20% due to market weakness. The company is leveraging its TIDE Touch platform to pursue new opportunities in adjacent channels, including energy management and multi-dwelling unit property management.
The company expects net sales to range from $82 million to $92 million in Q4 2025, with connected home sales projected to decline 13% to 24% from $34.5 million last year. Analysts estimate next year's revenue growth at -7.9%. With a P/E Ratio of -1.79 and an EV/EBITDA of -11.9, the company's valuation multiples indicate a challenging outlook. However, the company's efforts to right-size its organization and reduce costs are expected to drive profitability.
Operating cash flow was $27.8 million through the first 9 months of 2025, and the net cash position strengthened to $13.2 million as of September 30, 2025. The company's net cash position and operating cash flow indicate a stable financial position, which is expected to help it navigate the challenging market conditions.
Universal Electronics Inc. (UEIC) Q3 2025 Earnings Call Transcript
Nov -07
Universal Electronics (UEIC) Surpasses Q3 Earnings Estimates
Nov -07
Universal Electronics Reports Financial Results for the Third Quarter 2025
Nov -06
Universal Electronics Inc. to Host Third Quarter 2025 Financial Results Conference Call on November 6th
Oct -23
Universal Electronics Inc. (UEIC) Q2 2025 Earnings Call Transcript
Aug -08
Universal Electronics (UEIC) Q2 Earnings and Revenues Beat Estimates
Aug -07
Universal Electronics Inc. to Host Second Quarter 2025 Financial Results Conference Call on August 7th
Jul -24
UEIC vs. HAYW: Which Stock Is the Better Value Option?
Jul -09
Growing demand for smart home devices, increasing adoption of IoT technology, and rising need for advanced security systems drive the growth of Universal Electronics Inc.'s control and sensor technology solutions.
High-definition TVs with built-in internet connectivity, enabling users to stream their favorite shows and movies
High-performance gaming consoles with advanced graphics and processing power
Wireless speakers and soundbars with advanced audio technology, delivering crystal-clear sound quality
Intelligent devices that can be controlled remotely, automating lighting, temperature, and security systems
Portable computing devices with advanced processors, memory, and storage
Advanced wearable devices that track fitness and health metrics, providing personalized insights and recommendations
High-performance smartphones with advanced cameras, processors, and storage, along with complementary accessories
The threat of substitutes for Universal Electronics Inc. is moderate due to the presence of alternative products in the market.
The bargaining power of customers is high due to the availability of multiple options for customers, leading to high competition.
The bargaining power of suppliers is low due to the company's large scale of operations and ability to negotiate better prices.
The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.
The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition.
| Value | |
|---|---|
| Debt Weight | 28.80% |
| Debt Cost | 5.62% |
| Equity Weight | 71.20% |
| Equity Cost | 9.28% |
| WACC | 8.23% |
| Leverage | 40.45% |
Value: 5.2
Growth: 4.2
Quality: 6.4
Yield: 0.0
Momentum: 4.0
Volatility: 4.0
1-Year Total Return ->
Value: 5.9
Growth: 3.1
Quality: 3.2
Yield: 0.0
Momentum: 7.5
Volatility: 4.0
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Value: 7.4
Growth: 1.9
Quality: 3.5
Yield: 0.0
Momentum: 5.0
Volatility: 5.3
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Value: 7.6
Growth: 2.0
Quality: 4.6
Yield: 0.0
Momentum: 4.0
Volatility: 1.7
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Value: 9.6
Growth: 0.9
Quality: 4.6
Yield: 0.0
Momentum: 0.5
Volatility: 2.7
1-Year Total Return ->
Value: 9.2
Growth: 2.9
Quality: 4.1
Yield: 0.0
Momentum: 1.5
Volatility: 0.3
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