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Ubiquiti (UBNT) Q4 Earnings Miss Estimates, Revenues Up Y/Y
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Ubiquiti Networks, Inc. reported decent fourth-quarter fiscal 2019 financial results, wherein both the bottom line and the top line increased on a year-over-year basis. Following the announcement, share price declined 4.9% in Friday’s trading session to eventually close at $113.95.
Net Income
On a GAAP basis, net income for the June quarter was $70.9 million or $1.01 per share compared with $70.1 million or 94 cents per share in the prior-year quarter. The improvement was primarily due to top-line growth and reduction in share count. For fiscal 2019, GAAP net income was $322.7 million or $4.51 per share compared with $196.3 million or $2.51 per share in fiscal 2018.
For fiscal fourth-quarter, non-GAAP net income came in at $83.6 million or $1.19 per share compared with $74.8 million or $1.01 per share in the year-ago quarter. The bottom line, however, missed the Zacks Consensus Estimate by 11 cents.
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise
Quarterly revenues increased 6.3% year over year to $286.6 million on the back of higher sales at Enterprise Technology business. By product type, revenues from Service Provider Technology were $100.9 million compared with $105.9 million in the year-ago quarter. Enterprise Technology revenues were $185.7 million compared with $163.8 million a year ago.
Geographically, revenues from North America were $147.5 million compared with $124.5 million in the year-ago quarter. Revenues from Europe, Middle East and Africa were $92.3 million, down from $102.3 million. Revenues from Asia Pacific were $26.2 million, up from $22.4 million. Revenues from South America were $20.7 million compared with $20.6 million in the prior-year quarter. For fiscal 2019, revenues increased 14.2% year over year to $1,161.7 million.
Other Quarterly Details
Gross profit increased to $132.9 million from $120.5 million in the year-ago quarter led by top-line growth. Gross margin improved to 46.4% from 44.7%, driven by favorable mix of products sold and lower indirect expenses. Total operating expenses were $32.1 million compared with $32.4 million in the year-earlier quarter on account of lower SG&A expenses. Operating income improved to $100.9 million from $88.1 million due to higher gross profit.
Cash Flow & Liquidity
During fiscal 2019, Ubiquiti generated $259.3 million of net cash from operating activities compared with $332 million in fiscal 2018. As of Jun 30, 2019, the computer networking company had $238.1 million in cash and equivalents with $464.7 million of long-term debt compared with the respective tallies of $666.7 million and $460.4 million a year ago.
During the reported quarter, Ubiquiti repurchased 1,116,466 shares at an average price of $127.52 per share. For fiscal 2019, it repurchased 4,733,853 shares at an average price of $99.38 per share.
As of Aug 8, 2019, the company had $7.4 million worth of shares outstanding under its $200 million share repurchase program, announced on Nov 9, 2018. It has initiated a new share repurchase program for up to $500 million.
Nokia surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 89.3%.
Verizon surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 2.6%.
U.S. Cellular surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 38.3%.
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Ubiquiti (UBNT) Q4 Earnings Miss Estimates, Revenues Up Y/Y
Ubiquiti Networks, Inc. reported decent fourth-quarter fiscal 2019 financial results, wherein both the bottom line and the top line increased on a year-over-year basis. Following the announcement, share price declined 4.9% in Friday’s trading session to eventually close at $113.95.
Net Income
On a GAAP basis, net income for the June quarter was $70.9 million or $1.01 per share compared with $70.1 million or 94 cents per share in the prior-year quarter. The improvement was primarily due to top-line growth and reduction in share count. For fiscal 2019, GAAP net income was $322.7 million or $4.51 per share compared with $196.3 million or $2.51 per share in fiscal 2018.
For fiscal fourth-quarter, non-GAAP net income came in at $83.6 million or $1.19 per share compared with $74.8 million or $1.01 per share in the year-ago quarter. The bottom line, however, missed the Zacks Consensus Estimate by 11 cents.
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise
Ubiquiti Networks, Inc. price-consensus-eps-surprise-chart | Ubiquiti Networks, Inc. Quote
Revenues
Quarterly revenues increased 6.3% year over year to $286.6 million on the back of higher sales at Enterprise Technology business. By product type, revenues from Service Provider Technology were $100.9 million compared with $105.9 million in the year-ago quarter. Enterprise Technology revenues were $185.7 million compared with $163.8 million a year ago.
Geographically, revenues from North America were $147.5 million compared with $124.5 million in the year-ago quarter. Revenues from Europe, Middle East and Africa were $92.3 million, down from $102.3 million. Revenues from Asia Pacific were $26.2 million, up from $22.4 million. Revenues from South America were $20.7 million compared with $20.6 million in the prior-year quarter. For fiscal 2019, revenues increased 14.2% year over year to $1,161.7 million.
Other Quarterly Details
Gross profit increased to $132.9 million from $120.5 million in the year-ago quarter led by top-line growth. Gross margin improved to 46.4% from 44.7%, driven by favorable mix of products sold and lower indirect expenses. Total operating expenses were $32.1 million compared with $32.4 million in the year-earlier quarter on account of lower SG&A expenses. Operating income improved to $100.9 million from $88.1 million due to higher gross profit.
Cash Flow & Liquidity
During fiscal 2019, Ubiquiti generated $259.3 million of net cash from operating activities compared with $332 million in fiscal 2018. As of Jun 30, 2019, the computer networking company had $238.1 million in cash and equivalents with $464.7 million of long-term debt compared with the respective tallies of $666.7 million and $460.4 million a year ago.
During the reported quarter, Ubiquiti repurchased 1,116,466 shares at an average price of $127.52 per share. For fiscal 2019, it repurchased 4,733,853 shares at an average price of $99.38 per share.
As of Aug 8, 2019, the company had $7.4 million worth of shares outstanding under its $200 million share repurchase program, announced on Nov 9, 2018. It has initiated a new share repurchase program for up to $500 million.
Stocks to Consider
Some top-ranked stocks in the broader industry are Nokia Corp. (NOK - Free Report) , Verizon Communications Inc. (VZ - Free Report) and United States Cellular Corporation (USM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 89.3%.
Verizon surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 2.6%.
U.S. Cellular surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 38.3%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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