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Ubiquiti's (UI) Q2 Earnings Rise Y/Y, Revenues Top Estimates
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Ubiquiti Inc. (UI - Free Report) reported solid second-quarter fiscal 2021 results, wherein the top line beat the Zacks Consensus Estimate.
The New York-based network technology company’s share price moved up 8% on Feb 5, closing at $339.
Net Income
On a GAAP basis, net income in the December quarter was $159.7 million or a record $2.54 per share compared with $85.8 million or $1.32 per share in the prior-year quarter. The improvement primarily resulted from higher operating income.
Non-GAAP net income came in at $159 million or $2.53 per share compared with $91.4 million or $1.40 per share in the year-ago quarter.
Quarterly revenues increased 55.5% year over year to a record $479.4 million, primarily driven by an increase in direct sales through the company’s webstores.
Revenues from Service Provider Technology were $149.9 million compared with $97.7 million in the year-ago quarter. Enterprise Technology revenues were $329.6 million, up from $210.6 million. The top line surpassed the consensus estimate of $414 million.
Region wise, revenues from North America were $193.4 million compared with $130 million in the year-ago quarter. Revenues from Europe, Middle East and Africa were $218.7 million, up from $120.6 million. Revenues from Asia Pacific were $37.4 million compared with $32.8 million a year ago, and the same from South America totaled $29.9 million, up from $24.9 million.
Other Details
Gross profit increased to $230.7 million from $145.1 million in the year-ago quarter, led by higher revenues. Gross margin improved to 48.1% from 47.1%, driven by favorable changes in product mix. This was, however, partly offset by higher shipping costs.
Total operating expenses increased to $39.9 million from $33 million in the prior-year quarter. This was due to higher research and development as well as sales, general and administrative expenses. Operating income came in at $190.8 million compared with $112 million a year ago.
During the quarter, Ubiquiti repurchased 309,133 shares at an average price of $178.11 per share. The board approved a cash dividend of 40 cents per share. The amount is payable on Feb 22 to shareholders on record as of Feb 16.
Zacks Rank & Stocks to Consider
Ubiquiti currently carries a Zacks Rank #3 (Hold).
Comtech delivered a trailing four-quarter positive earnings surprise of 2%, on average.
Clearfield delivered a trailing four-quarter positive earnings surprise of 62.6%, on average.
Sonim delivered a trailing four-quarter positive earnings surprise of 2.2%, on average.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Ubiquiti's (UI) Q2 Earnings Rise Y/Y, Revenues Top Estimates
Ubiquiti Inc. (UI - Free Report) reported solid second-quarter fiscal 2021 results, wherein the top line beat the Zacks Consensus Estimate.
The New York-based network technology company’s share price moved up 8% on Feb 5, closing at $339.
Net Income
On a GAAP basis, net income in the December quarter was $159.7 million or a record $2.54 per share compared with $85.8 million or $1.32 per share in the prior-year quarter. The improvement primarily resulted from higher operating income.
Non-GAAP net income came in at $159 million or $2.53 per share compared with $91.4 million or $1.40 per share in the year-ago quarter.
Ubiquiti Inc. Price, Consensus and EPS Surprise
Ubiquiti Inc. price-consensus-eps-surprise-chart | Ubiquiti Inc. Quote
Revenues
Quarterly revenues increased 55.5% year over year to a record $479.4 million, primarily driven by an increase in direct sales through the company’s webstores.
Revenues from Service Provider Technology were $149.9 million compared with $97.7 million in the year-ago quarter. Enterprise Technology revenues were $329.6 million, up from $210.6 million. The top line surpassed the consensus estimate of $414 million.
Region wise, revenues from North America were $193.4 million compared with $130 million in the year-ago quarter. Revenues from Europe, Middle East and Africa were $218.7 million, up from $120.6 million. Revenues from Asia Pacific were $37.4 million compared with $32.8 million a year ago, and the same from South America totaled $29.9 million, up from $24.9 million.
Other Details
Gross profit increased to $230.7 million from $145.1 million in the year-ago quarter, led by higher revenues. Gross margin improved to 48.1% from 47.1%, driven by favorable changes in product mix. This was, however, partly offset by higher shipping costs.
Total operating expenses increased to $39.9 million from $33 million in the prior-year quarter. This was due to higher research and development as well as sales, general and administrative expenses. Operating income came in at $190.8 million compared with $112 million a year ago.
During the quarter, Ubiquiti repurchased 309,133 shares at an average price of $178.11 per share. The board approved a cash dividend of 40 cents per share. The amount is payable on Feb 22 to shareholders on record as of Feb 16.
Zacks Rank & Stocks to Consider
Ubiquiti currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry are Comtech Telecommunications (CMTL - Free Report) , Clearfield (CLFD - Free Report) and Sonim Technologies (SONM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comtech delivered a trailing four-quarter positive earnings surprise of 2%, on average.
Clearfield delivered a trailing four-quarter positive earnings surprise of 62.6%, on average.
Sonim delivered a trailing four-quarter positive earnings surprise of 2.2%, on average.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>