We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ubiquiti Q4 Earnings Surpass Estimates, Top Line Surges Y/Y
Read MoreHide Full Article
Key Takeaways
Ubiquiti's Q4 revenues jumped to $759.2M from $507.5M, topping consensus estimates.
Enterprise Technology sales rose to $680.1M, fueled by demand across most regions.
North America and EMEA delivered the strongest regional revenue growth for Ubiquiti.
Ubiquiti, Inc. (UI - Free Report) reported strong fourth-quarter fiscal 2025 results, with both bottom and top lines surpassing the respective Zacks Consensus Estimates. The New York-based networking products and solutions provider 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 regions is a major tailwind. Solid growth in cash flow is a positive.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $266.7 million or $4.41 per share compared with $103.8 million or $1.72 in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the quarter was $214.4 million or $3.54 per share compared with $105.1 million or $1.74 in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by $1.6.
In 2025, net income increased to $711.9 million or $11.76 per share compared to a net income of $349.9 million or $5.79 per share in 2024. Non-GAAP net income increased to $663.7 million or $10.96 per share from $354.8 million or $5.87 per share in 2024.
Net sales in the quarter increased to $759.2 million from $507.5 million in the prior-year quarter. The healthy demand in the Enterprise Technology segment supported the top line. The metric beat the consensus estimate by $144 million.
For fiscal 2025, the company reported revenues of $2.57 billion, up from $1.92 billion in 2024.
Enterprise Technology generated $680.1 million in revenues, up from $431.7 million in the prior-year quarter. The top line surpassed our estimate of $519 million. Strong demand trends in all regions except South America drove net sales in this segment.
Service Provider Technology registered $79 million in revenues, up from $75.7 million in the year-ago quarter. The increase in revenues is primarily attributed to strength in North Europe, the Middle East and Africa regions. Net sales beat our revenue estimate of $75.9 million.
Region-wise, revenues from North America were $379.9 million compared with $253.3 million in the year-ago quarter. Net sales from EMEA (Europe, the Middle East and Africa) aggregated $303.8 million, up from $194.1 million. Asia Pacific revenues increased to $47.3 million from $32.1 million in the year-earlier quarter. Revenues from South America were $28.1 million, up from $27.9 million a year ago.
Other Details for UI
During the June quarter, gross profit was $342.7 million compared with $204.1 million in the year-ago quarter, with respective margins of 45.1% and 40.2%. Favorable product mix, lower excess and obsolete inventory charges drove the gross margin. Higher tariffs partially reversed this positive trend.
The research and development expenses increased to $47.5 million from $44 million due to higher employee-related expenses, partially offset by lower prototype-related expenses. Operating income was $261.4 million, up from $138.3 million in the prior year.
UI’s Cash Flow & Liquidity
In 2025, Ubiquiti generated $640 million of cash in operating activities compared with $541.5 million in the prior-year quarter. As of June 30, 2025, the company had $149.7 million in cash and cash equivalents, with $26 million of other long-term liabilities.
Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.
InterDigital, Inc. (IDCC - Free Report) currently carries a Zacks Rank #2. The company delivered an earnings surprise of 54.27% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses
Celestica, Inc. (CLS - Free Report) currently sports a Zacks Rank 1. The company delivered an earnings surprise of 7.71% in the trailing four quarters.
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. AI investments are driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, and servers and storage-related products.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ubiquiti Q4 Earnings Surpass Estimates, Top Line Surges Y/Y
Key Takeaways
Ubiquiti, Inc. (UI - Free Report) reported strong fourth-quarter fiscal 2025 results, with both bottom and top lines surpassing the respective Zacks Consensus Estimates. The New York-based networking products and solutions provider 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 regions is a major tailwind. Solid growth in cash flow is a positive.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $266.7 million or $4.41 per share compared with $103.8 million or $1.72 in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the quarter was $214.4 million or $3.54 per share compared with $105.1 million or $1.74 in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate by $1.6.
In 2025, net income increased to $711.9 million or $11.76 per share compared to a net income of $349.9 million or $5.79 per share in 2024. Non-GAAP net income increased to $663.7 million or $10.96 per share from $354.8 million or $5.87 per share in 2024.
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 $759.2 million from $507.5 million in the prior-year quarter. The healthy demand in the Enterprise Technology segment supported the top line. The metric beat the consensus estimate by $144 million.
For fiscal 2025, the company reported revenues of $2.57 billion, up from $1.92 billion in 2024.
Enterprise Technology generated $680.1 million in revenues, up from $431.7 million in the prior-year quarter. The top line surpassed our estimate of $519 million. Strong demand trends in all regions except South America drove net sales in this segment.
Service Provider Technology registered $79 million in revenues, up from $75.7 million in the year-ago quarter. The increase in revenues is primarily attributed to strength in North Europe, the Middle East and Africa regions. Net sales beat our revenue estimate of $75.9 million.
Region-wise, revenues from North America were $379.9 million compared with $253.3 million in the year-ago quarter. Net sales from EMEA (Europe, the Middle East and Africa) aggregated $303.8 million, up from $194.1 million. Asia Pacific revenues increased to $47.3 million from $32.1 million in the year-earlier quarter. Revenues from South America were $28.1 million, up from $27.9 million a year ago.
Other Details for UI
During the June quarter, gross profit was $342.7 million compared with $204.1 million in the year-ago quarter, with respective margins of 45.1% and 40.2%. Favorable product mix, lower excess and obsolete inventory charges drove the gross margin. Higher tariffs partially reversed this positive trend.
The research and development expenses increased to $47.5 million from $44 million due to higher employee-related expenses, partially offset by lower prototype-related expenses. Operating income was $261.4 million, up from $138.3 million in the prior year.
UI’s Cash Flow & Liquidity
In 2025, Ubiquiti generated $640 million of cash in operating activities compared with $541.5 million in the prior-year quarter. As of June 30, 2025, the company had $149.7 million in cash and cash equivalents, with $26 million of other long-term liabilities.
UI’s Zacks Rank & Other Stocks to Consider
Ubiquiti currently carries a Zacks Rank #2 (Buy).
Jabil, Inc. (JBL - Free Report) currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 9.44%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.
InterDigital, Inc. (IDCC - Free Report) currently carries a Zacks Rank #2. The company delivered an earnings surprise of 54.27% in the trailing four quarters.
InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses
Celestica, Inc. (CLS - Free Report) currently sports a Zacks Rank 1. The company delivered an earnings surprise of 7.71% in the trailing four quarters.
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. AI investments are driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, and servers and storage-related products.