We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 vs. Motorola: Which Stock to Bet on Post Earnings?
Read MoreHide Full Article
As the curtains roll down over March-quarter earnings, industry peers are doing various analysis and comparisons to gauge the underlying metrics and relative performance. Let us perform a similar comparative analysis between two stocks in the Zacks Wireless Equipment industry — Ubiquiti Networks, Inc. and Motorola Solutions, Inc. (MSI - Free Report) — to pick the better investment option.
Earnings Scoresheet
Ubiquiti reported solid third-quarter fiscal 2018 results with year-over-year increase in earnings and revenues driven by healthy growth dynamics. Adjusted earnings came in at 98 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 22.5%. The bottom line jumped 25.6% from year-ago figure of 78 cents. The year-over-year improvement can primarily be attributable to impressive growth in revenues generated by its enterprise technology during the quarter. Revenues of $250.4 million improved 14.6% on a year-over-year basis.
Motorola reported strong first-quarter 2018 results on the back of healthy growth across all geographic regions. GAAP earnings for the reported quarter were $117 million or 69 cents per share compared with $77 million or 45 cents per share in the year-earlier quarter. The year-over-year improvement was primarily attributable to top-line growth. Excluding non-recurring items, non-GAAP earnings for the reported quarter were $1.10 per share compared with 71 cents in the year-ago quarter. The bottom line exceeded the Zacks Consensus Estimate of 86 cents. Net sales in the reported quarter came in at $1,468 million compared with $1,281 million in the year-ago quarter, driven by organic growth of 10% and healthy performance across all regions. Quarterly sales exceeded the Zacks Consensus Estimate of $1,371 million.
Based on the recent-quarter earnings, Motorola has a clear edge over Ubiquiti due to a better earnings surprise percentage.
Price Performance
Over the past year, Ubiquiti clearly outperformed Motorola with an average return of 64.2% compared with a gain of 28.3% for the latter while the industry gained 5.9%.
Guidance
Ubiquiti has reiterated its previous guidance for fiscal 2018. The company continues to expect generating $1 billion revenues and earnings per share of $3.70 in fiscal 2018.
Motorola is poised to gain from robust organic growth, disciplined capital deployment and a favorable global macroeconomic environment. With solid quarterly results and continued strength in order trajectory, management has raised guidance for 2018. Full-year adjusted earnings are currently anticipated to lie within the $6.70-$6.85 per share range, up from $6.50-$6.65 expected earlier on revenue growth of 14%, up from prior expectations of 10-11% growth.
Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 or 2, offer the best investment opportunities for investors. Consequently, Ubiquiti appears to be better positioned than Motorola with regards to this metric.
Estimate Revisions
Post earnings release, Ubiquiti’s current-quarter estimates increased from 84 cents to 98 cents per share (up 16.7%) while that for the current fiscal increased from $3.56 to $3.63 (up 2%).
Motorola’s current-quarter estimates increased to $1.37 from $1.36 post earnings release (up 0.7%) while current-year estimates increased to $6.76 per share from $6.57 (up 2.9%). With positive estimate revisions, investor sentiments appear to be more bullish on Ubiquiti than Motorola with respect to current-quarter estimates but just the opposite for current-year estimates.
To Sum Up
Based on the current scenario, Ubiquiti seems to have trumped Motorola on most fronts and stands out as a better investment option.
A couple of other top-ranked stocks in the industry are HealthStream, Inc. (HSTM - Free Report) and Match Group, Inc. (MTCH - Free Report) , both carrying a Zacks Rank #2.
HealthStream has a long-term earnings growth expectation of 16%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 69.2%.
Match Group has a long-term earnings growth expectation of 12.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Ubiquiti vs. Motorola: Which Stock to Bet on Post Earnings?
As the curtains roll down over March-quarter earnings, industry peers are doing various analysis and comparisons to gauge the underlying metrics and relative performance. Let us perform a similar comparative analysis between two stocks in the Zacks Wireless Equipment industry — Ubiquiti Networks, Inc. and Motorola Solutions, Inc. (MSI - Free Report) — to pick the better investment option.
Earnings Scoresheet
Ubiquiti reported solid third-quarter fiscal 2018 results with year-over-year increase in earnings and revenues driven by healthy growth dynamics. Adjusted earnings came in at 98 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 22.5%. The bottom line jumped 25.6% from year-ago figure of 78 cents. The year-over-year improvement can primarily be attributable to impressive growth in revenues generated by its enterprise technology during the quarter. Revenues of $250.4 million improved 14.6% on a year-over-year basis.
Motorola reported strong first-quarter 2018 results on the back of healthy growth across all geographic regions. GAAP earnings for the reported quarter were $117 million or 69 cents per share compared with $77 million or 45 cents per share in the year-earlier quarter. The year-over-year improvement was primarily attributable to top-line growth. Excluding non-recurring items, non-GAAP earnings for the reported quarter were $1.10 per share compared with 71 cents in the year-ago quarter. The bottom line exceeded the Zacks Consensus Estimate of 86 cents. Net sales in the reported quarter came in at $1,468 million compared with $1,281 million in the year-ago quarter, driven by organic growth of 10% and healthy performance across all regions. Quarterly sales exceeded the Zacks Consensus Estimate of $1,371 million.
Based on the recent-quarter earnings, Motorola has a clear edge over Ubiquiti due to a better earnings surprise percentage.
Price Performance
Over the past year, Ubiquiti clearly outperformed Motorola with an average return of 64.2% compared with a gain of 28.3% for the latter while the industry gained 5.9%.
Guidance
Ubiquiti has reiterated its previous guidance for fiscal 2018. The company continues to expect generating $1 billion revenues and earnings per share of $3.70 in fiscal 2018.
Motorola is poised to gain from robust organic growth, disciplined capital deployment and a favorable global macroeconomic environment. With solid quarterly results and continued strength in order trajectory, management has raised guidance for 2018. Full-year adjusted earnings are currently anticipated to lie within the $6.70-$6.85 per share range, up from $6.50-$6.65 expected earlier on revenue growth of 14%, up from prior expectations of 10-11% growth.
Zacks Rank & VGM Score
With a Zacks Rank #2 (Buy), Ubiquiti has a Value Growth Momentum score (VGM Score) of B. Motorola has a VGM Score of F and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 or 2, offer the best investment opportunities for investors. Consequently, Ubiquiti appears to be better positioned than Motorola with regards to this metric.
Estimate Revisions
Post earnings release, Ubiquiti’s current-quarter estimates increased from 84 cents to 98 cents per share (up 16.7%) while that for the current fiscal increased from $3.56 to $3.63 (up 2%).
Motorola’s current-quarter estimates increased to $1.37 from $1.36 post earnings release (up 0.7%) while current-year estimates increased to $6.76 per share from $6.57 (up 2.9%). With positive estimate revisions, investor sentiments appear to be more bullish on Ubiquiti than Motorola with respect to current-quarter estimates but just the opposite for current-year estimates.
To Sum Up
Based on the current scenario, Ubiquiti seems to have trumped Motorola on most fronts and stands out as a better investment option.
A couple of other top-ranked stocks in the industry are HealthStream, Inc. (HSTM - Free Report) and Match Group, Inc. (MTCH - Free Report) , both carrying a Zacks Rank #2.
HealthStream has a long-term earnings growth expectation of 16%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 69.2%.
Match Group has a long-term earnings growth expectation of 12.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>