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Ubiquiti Q2 Earnings Beat Estimates, Top Line Surges Y/Y
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Ubiquiti, Inc. (UI - Free Report) reported strong second-quarter fiscal 2025 results, with both bottom and top lines surpassing the respective Zacks Consensus Estimates. The New York-based networking products and solutions providers reported revenue growth year over year, owing to healthy traction in the Enterprise Technology segment. Healthy demand in North America, Europe, The Middle East and Africa region is a major tailwind.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $136.8 million or $2.26 per share compared with $82.1 million or $1.36 in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the second quarter of fiscal 2025 was $138.1 million or $2.28 per share compared with $83.3 million or $1.38 in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.71.
Net sales in the quarter increased to $599.9 million from $465 million in the prior-year quarter. The healthy demand in multiple segments supported the top line. The metric beat the consensus estimate by $79 million.
Enterprise Technology generated $518.2 million in revenues, up from $391.5 million in the prior-year quarter. The top line surpassed our estimate of $450 million. Strong demand trends in all regions except South America drove net sales in this segment.
Service Provider Technology registered $81.7 million in revenues, up from $73.5 million in the year-ago quarter. The increase in revenues is primarily attributed to healthy demand in the regions of North and South America. Net sales beat our revenue estimate of $74.2 million.
Region-wise, revenues from North America were $321.6 million compared with $225.9 million in the year-ago quarter. Net sales from EMEA (Europe, the Middle East and Africa) aggregated $208.6 million, up from $173 million. Asia Pacific revenues increased to $43.1 million from $33.3 million in the year-earlier quarter. Revenues from South America were $26.6 million, down from $32.9 million a year ago.
Other Details for UI
During the December quarter, gross profit was $247.2 million compared with $177.6 million in the year-ago quarter, with respective margins of 41.2% and 38.2%. Lower warehouse-related costs, favorable product mix, lower excess and obsolete inventory charges drove the gross margin.
The research and development expenses increased to $40 million from $36.9 million due to higher prototype-related expenses and employee related expenses. Operating income was $178.8 million, up from $121.1 million in the prior year.
UI’s Cash Flow & Liquidity
In the first six months of fiscal 2025, Ubiquiti generated $386.1 million of cash in operating activities compared with $146.3 million in the prior-year quarter. As of Dec. 31, 2024, the company had $133.1 million in cash and cash equivalents, with $381.1 million of long-term debt.
UI’s Zacks Rank & Other Stocks to Consider
Ubiquiti currently carries a Zacks Rank #2 (Buy).
Here are other top-ranked stocks that investors may consider.
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InterDigital (IDCC - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 158.41%, in the trailing four quarters
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Zillow Group, Inc. (ZG - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor.
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Ubiquiti Q2 Earnings Beat Estimates, Top Line Surges Y/Y
Ubiquiti, Inc. (UI - Free Report) reported strong second-quarter fiscal 2025 results, with both bottom and top lines surpassing the respective Zacks Consensus Estimates. The New York-based networking products and solutions providers reported revenue growth year over year, owing to healthy traction in the Enterprise Technology segment. Healthy demand in North America, Europe, The Middle East and Africa region is a major tailwind.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $136.8 million or $2.26 per share compared with $82.1 million or $1.36 in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the second quarter of fiscal 2025 was $138.1 million or $2.28 per share compared with $83.3 million or $1.38 in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.71.
Ubiquiti Inc. Price, Consensus and EPS Surprise
Ubiquiti Inc. price-consensus-eps-surprise-chart | Ubiquiti Inc. Quote
UI’s Revenues
Net sales in the quarter increased to $599.9 million from $465 million in the prior-year quarter. The healthy demand in multiple segments supported the top line. The metric beat the consensus estimate by $79 million.
Enterprise Technology generated $518.2 million in revenues, up from $391.5 million in the prior-year quarter. The top line surpassed our estimate of $450 million. Strong demand trends in all regions except South America drove net sales in this segment.
Service Provider Technology registered $81.7 million in revenues, up from $73.5 million in the year-ago quarter. The increase in revenues is primarily attributed to healthy demand in the regions of North and South America. Net sales beat our revenue estimate of $74.2 million.
Region-wise, revenues from North America were $321.6 million compared with $225.9 million in the year-ago quarter. Net sales from EMEA (Europe, the Middle East and Africa) aggregated $208.6 million, up from $173 million. Asia Pacific revenues increased to $43.1 million from $33.3 million in the year-earlier quarter. Revenues from South America were $26.6 million, down from $32.9 million a year ago.
Other Details for UI
During the December quarter, gross profit was $247.2 million compared with $177.6 million in the year-ago quarter, with respective margins of 41.2% and 38.2%. Lower warehouse-related costs, favorable product mix, lower excess and obsolete inventory charges drove the gross margin.
The research and development expenses increased to $40 million from $36.9 million due to higher prototype-related expenses and employee related expenses. Operating income was $178.8 million, up from $121.1 million in the prior year.
UI’s Cash Flow & Liquidity
In the first six months of fiscal 2025, Ubiquiti generated $386.1 million of cash in operating activities compared with $146.3 million in the prior-year quarter. As of Dec. 31, 2024, the company had $133.1 million in cash and cash equivalents, with $381.1 million of long-term debt.
UI’s Zacks Rank & Other Stocks to Consider
Ubiquiti currently carries a Zacks Rank #2 (Buy).
Here are other top-ranked stocks that investors may consider.
Keysight Technologies, Inc. (KEYS - Free Report) has a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.
InterDigital (IDCC - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 158.41%, in the trailing four quarters
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Zillow Group, Inc. (ZG - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor.