Investors Delight As Ubiquiti Serves Earnings Beat, Strong Outlook
Shares of Ubiquiti Networks Inc (NASDAQ: UBNT) climbed about 25 percent, a day after the networking technology firm reported better-than-expected quarterly numbers.
The stock opened at $33.85 on Friday and went on to touch $35. The shares were trading in the range of $25.50 to $37.10 during the past 52-weeks. So far, 3.6 million shares have changed hands compared to its 3-month average trading volume of 500,000 shares. The stock trades 15 times its next year earnings.
The San Jose, California- based company reported adjusted earnings of 58 cents per share for the second quarter on revenue of $161.9 million, while analysts were estimating for earnings of 51 cents per share on revenue of $155.08 million.
Ubiquiti sees third quarter earnings between 53 cents and 60 cents a share on revenue of $160 million to $170 million. The forecast topped the Street's view of 51 cents a share earnings on revenue of $158.79 million.
Ubiquiti is benefiting from strong demand for its products that are ideal for cost-effective deployment of high‑performance wireless networks. Enterprise Technology revenues advanced 9 percent sequentially. In addition, Service Provider Technology revenues increased 6 percent quarter-over-quarter, driven by its airMAX technology platform.
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