Earnings Outlook For Ribbon Comms

Ribbon Comms (NASDAQ:RBBN) will release its quarterly earnings report on Wednesday, 2025-10-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Ribbon Comms to report an earnings per share (EPS) of $0.05.

Investors in Ribbon Comms are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

The company's EPS beat by $0.01 in the last quarter, leading to a 8.47% drop in the share price on the following day.

Here's a look at Ribbon Comms's past performance and the resulting price change:

Quarter Q2 2025 Q1 2025 Q4 2024 Q3 2024
EPS Estimate 0.04 0.01 0.12 0.06
EPS Actual 0.05 -0.03 0.16 0.05
Price Change % -8.00 -14.00 15.00 8.00

Tracking Ribbon Comms's Stock Performance

Shares of Ribbon Comms were trading at $3.93 as of October 20. Over the last 52-week period, shares are up 17.78%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Ribbon Comms

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Ribbon Comms.

Analysts have provided Ribbon Comms with 2 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $6.0, suggesting a potential 52.67% upside.

Comparing Ratings with Competitors

The below comparison of the analyst ratings and average 1-year price targets of Adtran Holdings, Gilat Satellite Networks and Netgear, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

  • Analysts currently favor an Buy trajectory for Adtran Holdings, with an average 1-year price target of $16.0, suggesting a potential 307.12% upside.
  • Analysts currently favor an Buy trajectory for Gilat Satellite Networks, with an average 1-year price target of $11.0, suggesting a potential 179.9% upside.
  • Analysts currently favor an Buy trajectory for Netgear, with an average 1-year price target of $38.33, suggesting a potential 875.32% upside.

Overview of Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Adtran Holdings, Gilat Satellite Networks and Netgear, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Ribbon Communications Buy 14.52% $109.31M -2.95%
Adtran Holdings Buy 17.29% $98.92M -9.43%
Gilat Satellite Networks Buy 36.98% $31.93M 3.20%
Netgear Buy 18.51% $63.98M -1.22%

Key Takeaway:

Ribbon Communications ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks at the top for Return on Equity.

Get to Know Ribbon Comms Better

Ribbon Communications Inc provides network solutions to service providers and enterprises. The company enables service providers and enterprises to modernize their communications networks and provide secure real-time communications solutions to their customers and employees. The company has two separate lines of business; the Cloud and Edge segment, and the IP Optical Networks segment. The majority of the revenue for the company is generated from its Cloud and Edge segment that provides secure and reliable software and hardware products, solutions, and services for VoIP communications, Voice Over LTE among others to service providers and enterprise customers. The company generates majority of its revenue from United States.

Breaking Down Ribbon Comms's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Ribbon Comms displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 14.52%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -5.03%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Ribbon Comms's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -2.95%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Ribbon Comms's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.97%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 1.1, Ribbon Comms faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Ribbon Comms visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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