Clearfield, Inc. reported net sales for the second quarter of fiscal 2025 increased 28% to $47.2 million, significantly exceeding its guidance range of $37 million to $40 million. This outperformance was driven by strong customer demand across all Clearfield segment end markets and efficient conversion of quoting activity into revenue.
The company achieved a gross margin of 30.1% in Q2 FY25, a substantial increase from 7.7% in the prior year's second quarter. This margin expansion resulted from increased volumes within the Clearfield segment, improved utilization of manufacturing overhead, and a $4.5 million reduction in excess inventory charges.
Clearfield reported net income of $1.3 million, or $0.09 per diluted share, for the second quarter of fiscal 2025, a significant turnaround from a net loss of $5.9 million, or ($0.40) per diluted share, in the same year-ago quarter. This also surpassed the company's guidance for net loss per share.
The company reiterated its annual revenue guidance for fiscal 2025 in the range of $170 million to $185 million. For the third quarter of fiscal 2025, Clearfield expects net sales between $45 million and $50 million and net income per share between $0.01 and $0.08. The company stated that the evolving tariff situation is not expected to materially affect its operating results.
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