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Anterix (ATEX) Up 30.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Anterix (ATEX - Free Report) . Shares have added about 30.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Anterix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Anterix Records Narrower-Than-Expected Q3 Loss Despite Flat Revenues
Key Highlights
Spectrum revenue of $1.573 million in the third quarter of fiscal 2026, essentially flat year-over-year from $1.566 million in the year-ago quarter. Operating expenses declined 23% to $11.8 million from $15.3 million, driven by lower severance and reduced G&A. Cash and cash equivalents stood at $29.5 million with restricted cash of $8.4 million at year-end and no debt. Approximately $123 million of contracted proceeds are outstanding, with a line of sight to collect over $80 million in the fiscal fourth quarter.
Revenue and Earnings Drivers
Revenue remained essentially flat as spectrum revenue recognition is paced by customer delivery milestones and deferred revenue amortization. By customer in the fiscal third quarter: Xcel Energy contributed $0.9 million (up 12.9% year over year), Ameren $0.21 million (up 4.6%), Evergy $0.4 million (flat), and TECO $0.8 million. Prior-year narrowband revenue from Motorola ($0.18 million) rolled off after full recognition in fiscal 2025. Revenues for the reported quarter were in sync with the Zacks Consensus Estimate.
Anterix recorded a loss of $6.6 million or a loss of 35 cents per share in the reported quarter against net income of $7.7 million or 41 cents per share in the year-earlier quarter, driven by lower non-operational gains from license exchanges. Fiscal third quarter 2026 included a $0.8 million gain on spectrum exchange and $0.3 million on sales, compared with a $20.8 million exchange gain in fiscal third quarter 2025. The bottom line was narrower than the consensus estimate of a loss of 57 cents per share.
Commercial and Cost Execution
Cost structure improved materially with G&A down 5.9% year over year to $8.7 million and severance charges down 86.8% to $0.5 million. Management executed a 20% OpEx run-rate reduction in fiscal 2026. The company signed CPS Energy for a $13 million spectrum sale (including 50% upfront payment in the fourth quarter of fiscal 2026 and remaining 50% at the end of fiscal 2027) and cited 8 flagship customers totaling approximately $400 million in contract value and about $3 billion pipeline across more than 60 prospects. New products (tower access, SIM management) are expected to deliver high margins and recurring revenue with long-term stickiness.
Balance Sheet
The company remained unlevered with deferred revenue of $132.6 million (current and long-term combined) and intangible assets of $330.8 million. Operating cash flow was an outflow of $8.3 million in the fiscal third quarter, bringing the tally for the first nine months of fiscal 2026 outflow to $10.0 million versus $12.7 million in the year-ago period. No share repurchases occurred during the quarter, with $226.7 million remaining under buyback authorization.
Regulatory and Outlook
Management raised fiscal cash proceeds guidance to $120 million from $100 million and expects fiscal 2026 to be the company's first year of positive GAAP net income, supported by cost discipline, accelerated license deliveries, and non-operational gains. The FCC scheduled a vote for February 18 to expand 900 MHz broadband allocation from 6 MHz to 10 MHz.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Anterix has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Anterix has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Anterix (ATEX) Up 30.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Anterix (ATEX - Free Report) . Shares have added about 30.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Anterix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Anterix Records Narrower-Than-Expected Q3 Loss Despite Flat Revenues
Key Highlights
Spectrum revenue of $1.573 million in the third quarter of fiscal 2026, essentially flat year-over-year from $1.566 million in the year-ago quarter. Operating expenses declined 23% to $11.8 million from $15.3 million, driven by lower severance and reduced G&A. Cash and cash equivalents stood at $29.5 million with restricted cash of $8.4 million at year-end and no debt. Approximately $123 million of contracted proceeds are outstanding, with a line of sight to collect over $80 million in the fiscal fourth quarter.
Revenue and Earnings Drivers
Revenue remained essentially flat as spectrum revenue recognition is paced by customer delivery milestones and deferred revenue amortization. By customer in the fiscal third quarter: Xcel Energy contributed $0.9 million (up 12.9% year over year), Ameren $0.21 million (up 4.6%), Evergy $0.4 million (flat), and TECO $0.8 million. Prior-year narrowband revenue from Motorola ($0.18 million) rolled off after full recognition in fiscal 2025. Revenues for the reported quarter were in sync with the Zacks Consensus Estimate.
Anterix recorded a loss of $6.6 million or a loss of 35 cents per share in the reported quarter against net income of $7.7 million or 41 cents per share in the year-earlier quarter, driven by lower non-operational gains from license exchanges. Fiscal third quarter 2026 included a $0.8 million gain on spectrum exchange and $0.3 million on sales, compared with a $20.8 million exchange gain in fiscal third quarter 2025. The bottom line was narrower than the consensus estimate of a loss of 57 cents per share.
Commercial and Cost Execution
Cost structure improved materially with G&A down 5.9% year over year to $8.7 million and severance charges down 86.8% to $0.5 million. Management executed a 20% OpEx run-rate reduction in fiscal 2026. The company signed CPS Energy for a $13 million spectrum sale (including 50% upfront payment in the fourth quarter of fiscal 2026 and remaining 50% at the end of fiscal 2027) and cited 8 flagship customers totaling approximately $400 million in contract value and about $3 billion pipeline across more than 60 prospects. New products (tower access, SIM management) are expected to deliver high margins and recurring revenue with long-term stickiness.
Balance Sheet
The company remained unlevered with deferred revenue of $132.6 million (current and long-term combined) and intangible assets of $330.8 million. Operating cash flow was an outflow of $8.3 million in the fiscal third quarter, bringing the tally for the first nine months of fiscal 2026 outflow to $10.0 million versus $12.7 million in the year-ago period. No share repurchases occurred during the quarter, with $226.7 million remaining under buyback authorization.
Regulatory and Outlook
Management raised fiscal cash proceeds guidance to $120 million from $100 million and expects fiscal 2026 to be the company's first year of positive GAAP net income, supported by cost discipline, accelerated license deliveries, and non-operational gains. The FCC scheduled a vote for February 18 to expand 900 MHz broadband allocation from 6 MHz to 10 MHz.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Anterix has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Anterix has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.