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Ubiquiti (UBNT) Surpasses Q4 Earnings and Revenue Estimates
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Ubiquiti Networks, Inc. reported healthy fourth-quarter fiscal 2018 results, wherein both the top line and the bottom line topped the respective Zacks Consensus Estimate.
Net Income
GAAP net income for the fiscal fourth quarter was $70.1 million or 94 cents per share compared with $60.7 million or 74 cents per share in the prior-year quarter primarily due to higher revenues. Net income for fiscal 2018 decreased to $196.3 million or $2.51 per share from $257.5 million or $3.09 per share in the prior fiscal owing to higher income tax provision.
Non-GAAP net income for the reported quarter came in at $74.8 million or $1.01 per share compared with $61 million or 75 cents per share a year ago. The bottom line beat the Zacks Consensus Estimate by 3 cents.
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise
Quarterly revenues increased 18% year over year to $269.8 million. Also, the top line surpassed the Zacks Consensus Estimate of $242 million. Fiscal 2018 revenues increased 17.5% year over year to $1,016.9 million.
Other Quarter Details
Quarterly gross profit increased to $120.5 million from $103.2 million in the year-ago quarter. Gross margin decreased to 44.7% from 45.1% as the company incurred higher-than-normal shipping expenses to expedite the delivery of products.
Total operating expenses were $32.4 million compared with $31.5 million in the year-earlier quarter. Income from operations improved to $88.1 million from $71.7 million.
By product type, revenues from Service Provider Technology were $105.9 million compared with $114.7 million in the year-ago quarter. Enterprise Technology revenues were $163.8 million compared with $114 million a year ago.
Cash Flow and Liquidity
Ubiquiti generated $332 million as cash from operating activities in fiscal 2018 compared with $112 million in fiscal 2017.
As of Jun 30, 2018, the company had cash and cash equivalents of $666.7 million with long-term debt of $460.4 million compared with respective tallies of $604.2 million and $241.8 million a year ago.
Ubiquiti repurchased 7,162,312 shares of common stock at an average price of $62.13 per share in fiscal 2018.
Fiscal 2019 Outlook
Ubiquiti has provided guidance for fiscal 2019 based on the recent demand environment in its end markets. The company expects to generate revenues between $1.1 billion and $1.2 billion and earnings per share (EPS) of $4.00-$4.80 in fiscal 2019. However, if the new proposed tariffs for certain products imported into the United States from China are implemented, the low-end of EPS may decline to $3.65 or lower.
Zacks Rank & Stocks to Consider
Ubiquiti currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Ribbon Communications Inc. (RBBN - Free Report) , Clearfield, Inc. (CLFD - Free Report) and QUALCOMM Incorporated (QCOM - Free Report) . While Ribbon Communications sports a Zacks Rank #1 (Strong Buy), Clearfield and QUALCOMM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ribbon Communications has a long-term earnings growth expectation of 12%. It beat earnings estimates in each of the trailing four quarters, the average being 168.1%.
Clearfield beat earnings estimates in each of the trailing four quarters, the average being 52.8%.
QUALCOMM has a long-term earnings growth expectation of 10.9%. It beat earnings estimates in each of the trailing four quarters, the average being 19.8%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Ubiquiti (UBNT) Surpasses Q4 Earnings and Revenue Estimates
Ubiquiti Networks, Inc. reported healthy fourth-quarter fiscal 2018 results, wherein both the top line and the bottom line topped the respective Zacks Consensus Estimate.
Net Income
GAAP net income for the fiscal fourth quarter was $70.1 million or 94 cents per share compared with $60.7 million or 74 cents per share in the prior-year quarter primarily due to higher revenues. Net income for fiscal 2018 decreased to $196.3 million or $2.51 per share from $257.5 million or $3.09 per share in the prior fiscal owing to higher income tax provision.
Non-GAAP net income for the reported quarter came in at $74.8 million or $1.01 per share compared with $61 million or 75 cents per share a year ago. The bottom line beat the Zacks Consensus Estimate by 3 cents.
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise | Ubiquiti Networks, Inc. Quote
Revenues
Quarterly revenues increased 18% year over year to $269.8 million. Also, the top line surpassed the Zacks Consensus Estimate of $242 million. Fiscal 2018 revenues increased 17.5% year over year to $1,016.9 million.
Other Quarter Details
Quarterly gross profit increased to $120.5 million from $103.2 million in the year-ago quarter. Gross margin decreased to 44.7% from 45.1% as the company incurred higher-than-normal shipping expenses to expedite the delivery of products.
Total operating expenses were $32.4 million compared with $31.5 million in the year-earlier quarter. Income from operations improved to $88.1 million from $71.7 million.
By product type, revenues from Service Provider Technology were $105.9 million compared with $114.7 million in the year-ago quarter. Enterprise Technology revenues were $163.8 million compared with $114 million a year ago.
Cash Flow and Liquidity
Ubiquiti generated $332 million as cash from operating activities in fiscal 2018 compared with $112 million in fiscal 2017.
As of Jun 30, 2018, the company had cash and cash equivalents of $666.7 million with long-term debt of $460.4 million compared with respective tallies of $604.2 million and $241.8 million a year ago.
Ubiquiti repurchased 7,162,312 shares of common stock at an average price of $62.13 per share in fiscal 2018.
Fiscal 2019 Outlook
Ubiquiti has provided guidance for fiscal 2019 based on the recent demand environment in its end markets. The company expects to generate revenues between $1.1 billion and $1.2 billion and earnings per share (EPS) of $4.00-$4.80 in fiscal 2019. However, if the new proposed tariffs for certain products imported into the United States from China are implemented, the low-end of EPS may decline to $3.65 or lower.
Zacks Rank & Stocks to Consider
Ubiquiti currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Ribbon Communications Inc. (RBBN - Free Report) , Clearfield, Inc. (CLFD - Free Report) and QUALCOMM Incorporated (QCOM - Free Report) . While Ribbon Communications sports a Zacks Rank #1 (Strong Buy), Clearfield and QUALCOMM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ribbon Communications has a long-term earnings growth expectation of 12%. It beat earnings estimates in each of the trailing four quarters, the average being 168.1%.
Clearfield beat earnings estimates in each of the trailing four quarters, the average being 52.8%.
QUALCOMM has a long-term earnings growth expectation of 10.9%. It beat earnings estimates in each of the trailing four quarters, the average being 19.8%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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