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Bull Of The Day: Extreme Networks

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Extreme Networks (EXTR - Free Report) is the Bull of the Day and that is a surprise to some, but those that follow me have known about this stock for a long time now. I have been talking about this stock for some time and the positive move in this stock following earnings is probably only the start of another year of growth in this stock.

Talking About It For A Month

I have discussed Extreme Networks (EXTR - Free Report) as a Zacks Rank Buy ( on March 30, it was my Top Stock Pick of the Week ( on April 17th and was the subject of a radio show interview ( on May 2. 


That is a lot of exposure, but let’s face it, investors like a different sort of number.  They really like to see 100%, as in gains of 100% or more. Extreme Networks is up more than 100% in the Stocks Under $10 Service that I manage for Zacks Investment Research.


That winner isn’t the biggest, but it has a chance to be the best as the recent acquisitions point to more growth for Extreme Networks.


The company has made a few acquisitions over the last few months and that should drive growth over the next year.  The first deal was a $100M deal for the networking assets of Aavaya

The next deal had the analysts applauding management for getting a great asset at an even better price.  The data center networking assets of Brocade (AVGO) were bought in a deal that included future earn-outs.

Both of these deals should drive revenue and earnings for the next year or two.

Earnings History

The earnings history for EXTR is very good.  I see 8 straight beats of the Zacks Consensus Estimate and that means two straight years of management guiding expectations to the appropriate level. 


Estimates have been moving higher.  The 2017 number has moved from $0.19 in January to $0.22 in February.  By March the number moved up to $0.24 and that is where it is at the time of writing this article.  Given the recent beat, this number will likely move higher.

The 2018 number might also creep higher following the recent earnings release as well.  The number was $0.031 in January and is now at $0.36.


Extreme Networks, Inc. Price, Consensus and EPS Surprise

Extreme Networks, Inc. Price, Consensus and EPS Surprise | Extreme Networks, Inc. Quote


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