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PETACH TIKVA, Israel - Eltek Ltd . (NASDAQ:ELTK), a global manufacturer of printed circuit boards (PCBs), saw its shares tumble 22% after reporting fourth-quarter revenue that missed analyst estimates. The company’s strategic transition and investment plans impacted short-term performance amid ongoing industry shifts.
Eltek reported Q4 revenue of $10.76 million, falling short of the $13.5 million consensus estimate and declining from $12.3 million in the same quarter last year. The company’s net income for the quarter was $0 million, compared to $1.3 million or $0.22 per diluted share in Q4 2023. EBITDA for the quarter totaled $0.7 million, down from $2.4 million YoY.
The revenue miss comes as Eltek undergoes a strategic transition, which includes a $15 million investment plan aimed at expanding annual production capacity to $55-65 million. CEO Eli Yaffe acknowledged that these investments, along with facility expansion, have introduced "temporary disruptions and inefficiencies" impacting Q4 2024 results.
"We continue to witness sustained demand, reflected by the tenders issued in recent months for significant quantities of PCBs," Yaffe stated. "While these investments may introduce some short-term fluctuations in profitability, we remain confident in their long-term value."
For the full year 2024, Eltek reported revenue of $46.5 million, slightly down from $46.7 million in 2023. Net income for the year reached $4.2 million or $0.63 per diluted share, compared to $6.4 million or $1.07 per diluted share in 2023.
The company noted ongoing industry trends, including supply chain realignments due to US-China trade tensions and increased demand for defense-related PCBs amid global geopolitical instability. Eltek aims to capitalize on these shifts through its strategic investments and enhanced manufacturing capabilities.
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