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Ubiquiti (UI) Q4 Earnings Beat Estimates on Higher Revenues
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Ubiquiti, Inc. (UI - Free Report) reported mixed fourth-quarter fiscal 2024 results, with the bottom beating the Zacks Consensus Estimate but the top line missing the same. The New York-based networking products and solutions providers reported revenue growth year over year, owing to healthy traction in the Enterprise Technology vertical.
Ubiquiti’s Net Income
Net income, on a GAAP basis, in the quarter was $103.8 million or $1.72 per share compared with $103.7 million or $1.72 per share in the year-ago quarter. Despite top-line growth, higher operating expenses affected the net income.
Non-GAAP net income in the fourth quarter of fiscal 2024 was $105.1 million or $1.74 per share, compared with $104.7 million or $1.73 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.67.
For fiscal 2024, GAAP net income was $349.96 million or $5.79 per share compared with $407.64 million or $6.74 per share in fiscal 2023. Net income on a non-GAAP basis for fiscal 2024 was $354.75 million or $5.87 per share compared with $411.24 million or $6.80 per share in fiscal 2023.
Net sales in the quarter increased to $507.5 million from $491.1 million in the prior year quarter. Healthy demand in North America, Europe, the Middle East and Africa (EMEA) region supported the top line. However, the top line missed the consensus estimate by $27 million.
In 2024, the company generated $1.928 billion in revenues compared to $1.94 billion in fiscal 2023.
Enterprise Technology generated $431.7 million in revenues, up from $404.1 million in the prior year quarter. The top line fell short of our estimate of $443.8 million. Strong demand trends in several regions led to revenue growth from this segment.
Service Provider Technology registered $75.7 million in revenues, down from $87 million in the year-ago quarter. Net sales fell short of our revenue estimate of $86.8 million.
Region-wise, revenues from North America stood at $253.3 million compared with $238.3 million in the year ago quarter. Net sales from EMEA aggregated $194.1 million, up from $190.9 million. Asia Pacific revenues decreased to $32.1 million from $32.3 million in the year-earlier quarter. Revenues from South America were $28 million, down 5.1% year over year.
Other Details for Ubiquiti
During the June quarter, gross profit was $204.1 million compared with $203.3 million in the year-ago quarter, with respective margins of 40.2% and 41.4%. Despite favorable product mix and lower tariffs, rising shipping costs, higher excess and obsolete inventory charges affected the gross margin.
The research and development expenses increased to $44.1 million from $40.5 million due to higher prototype-related expenses. Operating income was $138.4 million, down from $143.9 million in the prior year.
Ubiquiti’s Cash Flow & Liquidity
In fiscal 2024, Ubiquiti generated $541.5 million of cash in operating activities against a cash utilization of $145.4 million in fiscal 2023. As of Jun 30, 2024, the company had $126.3 million in cash and cash equivalents, with $669.9 million of long-term debt.
Zacks Rank & Stocks to Consider
Ubiquiti currently carries a Zacks Rank #3 (Hold).
It is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
Harmonic Inc. (HLIT - Free Report) currently sports a Zacks Rank of 1. It delivered a trailing four-quarter average earnings surprise of 32.5%.
The company enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally.
AudioCodes Ltd. (AUDC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 10.14%, in the trailing four quarters.
Is a vendor of advanced voice networking and media processing solutions for the digital workplace. AudioCodes enables enterprises and service providers to build and operate all-IP voice networks for unified communications, contact centers, and hosted business services.
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Ubiquiti (UI) Q4 Earnings Beat Estimates on Higher Revenues
Ubiquiti, Inc. (UI - Free Report) reported mixed fourth-quarter fiscal 2024 results, with the bottom beating the Zacks Consensus Estimate but the top line missing the same. The New York-based networking products and solutions providers reported revenue growth year over year, owing to healthy traction in the Enterprise Technology vertical.
Ubiquiti’s Net Income
Net income, on a GAAP basis, in the quarter was $103.8 million or $1.72 per share compared with $103.7 million or $1.72 per share in the year-ago quarter. Despite top-line growth, higher operating expenses affected the net income.
Non-GAAP net income in the fourth quarter of fiscal 2024 was $105.1 million or $1.74 per share, compared with $104.7 million or $1.73 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.67.
For fiscal 2024, GAAP net income was $349.96 million or $5.79 per share compared with $407.64 million or $6.74 per share in fiscal 2023. Net income on a non-GAAP basis for fiscal 2024 was $354.75 million or $5.87 per share compared with $411.24 million or $6.80 per share in fiscal 2023.
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 $507.5 million from $491.1 million in the prior year quarter. Healthy demand in North America, Europe, the Middle East and Africa (EMEA) region supported the top line. However, the top line missed the consensus estimate by $27 million.
In 2024, the company generated $1.928 billion in revenues compared to $1.94 billion in fiscal 2023.
Enterprise Technology generated $431.7 million in revenues, up from $404.1 million in the prior year quarter. The top line fell short of our estimate of $443.8 million. Strong demand trends in several regions led to revenue growth from this segment.
Service Provider Technology registered $75.7 million in revenues, down from $87 million in the year-ago quarter. Net sales fell short of our revenue estimate of $86.8 million.
Region-wise, revenues from North America stood at $253.3 million compared with $238.3 million in the year ago quarter. Net sales from EMEA aggregated $194.1 million, up from $190.9 million. Asia Pacific revenues decreased to $32.1 million from $32.3 million in the year-earlier quarter. Revenues from South America were $28 million, down 5.1% year over year.
Other Details for Ubiquiti
During the June quarter, gross profit was $204.1 million compared with $203.3 million in the year-ago quarter, with respective margins of 40.2% and 41.4%. Despite favorable product mix and lower tariffs, rising shipping costs, higher excess and obsolete inventory charges affected the gross margin.
The research and development expenses increased to $44.1 million from $40.5 million due to higher prototype-related expenses. Operating income was $138.4 million, down from $143.9 million in the prior year.
Ubiquiti’s Cash Flow & Liquidity
In fiscal 2024, Ubiquiti generated $541.5 million of cash in operating activities against a cash utilization of $145.4 million in fiscal 2023. As of Jun 30, 2024, the company had $126.3 million in cash and cash equivalents, with $669.9 million of long-term debt.
Zacks Rank & Stocks to Consider
Ubiquiti currently carries a Zacks Rank #3 (Hold).
Arista Networks, Inc. (ANET - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. In the last reported quarter, it delivered an earnings surprise of 8.25%. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
Harmonic Inc. (HLIT - Free Report) currently sports a Zacks Rank of 1. It delivered a trailing four-quarter average earnings surprise of 32.5%.
The company enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally.
AudioCodes Ltd. (AUDC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 10.14%, in the trailing four quarters.
Is a vendor of advanced voice networking and media processing solutions for the digital workplace. AudioCodes enables enterprises and service providers to build and operate all-IP voice networks for unified communications, contact centers, and hosted business services.