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Harmonic (HLIT), Scopia Ink Cooperation Agreement, Shares Up

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Harmonic Inc. (HLIT - Free Report) recently inked a cooperation agreement with Scopia Capital Management LP ("Scopia"). The collaboration aims to bring certain changes in Harmonic’s management in 2022.

The changes will enable Harmonic to tap lucrative market opportunities that are expected to boost its future revenues and overall growth potential in the long run. Following the announcement, shares of the San Jose, CA-based company inched up 1.1% to close at $8.08 as of Apr 12.

Headquartered in New York City, NY, Scopia is an institutional alternative asset management company. The firm has more than $1 billion of assets under management and follows a fundamentals-based, value-driven investment approach.

The approach is dependent on three primary strategies — long-only equity strategy, a long-short equity strategy managed with market neutrality and a long-short equity strategy supported by net long exposure.

With experience of more than 25 years, Harmonic has been helping several media companies with faster solutions. These include virtualized cable access, video streaming and broadcast services. Notably, these smarter offerings not only aid cable operators to deploy breakthrough gigabit solutions but also simplify streaming experiences on the back of efficient cloud platforms.

Impressively, Harmonic is blessed with a robust ecosystem of technology partners that ensures access to a wide portfolio of third-party products and applications with seamless workflow integration. Pursuant to the terms of the deal, Scopia can appoint two directors to Harmonic's board of directors. Markedly, the agreement will get reflected on Form 8-K.

It is worth mentioning that Harmonic has teamed up with various organizations to deliver best-in-breed solutions to its customers with utmost ease. Be it streamlining over-the-top services or increasing R&D investments, the tech company has not been sparing any effort to enhance its competitiveness in the global market with dynamic innovations.

With the recent partnership, Harmonic is likely to capture profitable business opportunities while transforming the cable industry landscape on the back of its digital acceleration efforts and revenue-driving business model. This bodes well for the company’s long-term growth.

Harmonic currently has a Zacks Rank #3 (Hold). It has a long-term earnings growth expectation of 15%. The stock has returned 29.7% compared with 64.7% growth of the industry in the past year.

Some better-ranked stocks in the broader industry are Ubiquiti Inc. (UI - Free Report) , Corning Incorporated (GLW - Free Report) and Ooma, Inc. (OOMA - Free Report) . While Ubiquiti sports a Zacks Rank #1 (Strong Buy), Corning and Ooma carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti delivered a trailing four-quarter positive earnings surprise of 37.1%, on average.

Corning delivered a trailing four-quarter positive earnings surprise of 41.6%, on average.

Ooma delivered a trailing four-quarter positive earnings surprise of 163.7%, on average.

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