Ubiquiti Inc. ( UI Quick Quote 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. 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 Quick Quote CMTL - Free Report) , Clearfield ( CLFD Quick Quote CLFD - Free Report) and Sonim Technologies ( SONM Quick Quote 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
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