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Ubiquiti Q1 Earnings Beat Estimates on Solid Revenue Growth
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Ubiquiti, Inc. (UI - Free Report) reported strong first-quarter fiscal 2025 results, with both the bottom and top line surpassing the respective Zacks Consensus Estimate. The New York-based networking products and solutions providers reported revenue growth year over year, owing to healthy traction in the Enterprise Technology segment.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Healthy demand in North America, Europe, The Middle East and Africa region is a major tailwind.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $128 million or $2.12 per share compared with $87.8 million or $1.45 per share in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the first quarter of fiscal 2025 was $129.3 million or $2.14 per share, compared with $88.9 million or $1.47 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.77.
Net sales in the quarter increased to $550.3 million from $463.1 million in the prior year quarter. Healthy demand across all regions supported the top line. The top line beat the consensus estimate by $15 million.
Enterprise Technology generated $470.2 million in revenues, up from $380.1 million in the prior year quarter. The top line surpassed our estimate of $438.1 million. Strong demand trends in all regions except South America drove net sales in this segment.
Service Provider Technology registered $80.2 million in revenues, down from $83 million in the year-ago quarter. The decline in revenues is primarily attributed to soft demand in North America and EMEA (Europe, The Middle East and Africa) regions. However, net sales beat our revenue estimate of $78.9 million.
Region-wise, revenues from North America stood at $271.2 million compared with $224.8 million in the year-ago quarter. Net sales from EMEA aggregated $204.9 million, up from $172.4 million. Asia Pacific revenues increased to $40.9 million from $36.1 million in the year-earlier quarter. Revenues from South America were $33.3 million, up from $29.8 million a year ago.
Other Details for UI
During the September quarter, gross profit was $231.6 million compared with $183.9 million in the year-ago quarter, with respective margins of 42.1% and 39.7%. Despite increasing warehouse-related costs and shipping expenses, favorable product mix, lower excess and obsolete inventory charges drove the gross margin.
The research and development expenses increased to $38 million from $36.3 million due to higher employee-related expenses, depreciation and software costs. Operating income was $169.2 million, up from $128.3 million in the prior year.
UI’s Cash Flow & Liquidity
In first quarter of fiscal 2025, Ubiquiti generated $233.7 million of cash in operating activities compared with $67.7 million in prior year quarter. As of Sept. 30, 2024, the company had $165.2 million in cash and cash equivalents, with $527.2 million of long-term debt.
In the last reported quarter, it delivered an earnings surprise of 14.83%. It provides 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.
Zillow Group, Inc. (ZG - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters.
The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor. Solid growth in the Premier Agent business is driving growth in the Residential segment.
Workday Inc. (WDAY - Free Report) carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.
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Ubiquiti Q1 Earnings Beat Estimates on Solid Revenue Growth
Ubiquiti, Inc. (UI - Free Report) reported strong first-quarter fiscal 2025 results, with both the bottom and top line surpassing the respective Zacks Consensus Estimate. The New York-based networking products and solutions providers reported revenue growth year over year, owing to healthy traction in the Enterprise Technology segment.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Healthy demand in North America, Europe, The Middle East and Africa region is a major tailwind.
UI’s Net Income
Net income, on a GAAP basis, in the quarter was $128 million or $2.12 per share compared with $87.8 million or $1.45 per share in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.
Non-GAAP net income in the first quarter of fiscal 2025 was $129.3 million or $2.14 per share, compared with $88.9 million or $1.47 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.77.
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 $550.3 million from $463.1 million in the prior year quarter. Healthy demand across all regions supported the top line. The top line beat the consensus estimate by $15 million.
Enterprise Technology generated $470.2 million in revenues, up from $380.1 million in the prior year quarter. The top line surpassed our estimate of $438.1 million. Strong demand trends in all regions except South America drove net sales in this segment.
Service Provider Technology registered $80.2 million in revenues, down from $83 million in the year-ago quarter. The decline in revenues is primarily attributed to soft demand in North America and EMEA (Europe, The Middle East and Africa) regions. However, net sales beat our revenue estimate of $78.9 million.
Region-wise, revenues from North America stood at $271.2 million compared with $224.8 million in the year-ago quarter. Net sales from EMEA aggregated $204.9 million, up from $172.4 million. Asia Pacific revenues increased to $40.9 million from $36.1 million in the year-earlier quarter. Revenues from South America were $33.3 million, up from $29.8 million a year ago.
Other Details for UI
During the September quarter, gross profit was $231.6 million compared with $183.9 million in the year-ago quarter, with respective margins of 42.1% and 39.7%. Despite increasing warehouse-related costs and shipping expenses, favorable product mix, lower excess and obsolete inventory charges drove the gross margin.
The research and development expenses increased to $38 million from $36.3 million due to higher employee-related expenses, depreciation and software costs. Operating income was $169.2 million, up from $128.3 million in the prior year.
UI’s Cash Flow & Liquidity
In first quarter of fiscal 2025, Ubiquiti generated $233.7 million of cash in operating activities compared with $67.7 million in prior year quarter. As of Sept. 30, 2024, the company had $165.2 million in cash and cash equivalents, with $527.2 million of long-term debt.
Zacks Rank & Other Stocks to Consider
Ubiquiti currently carries a Zacks Rank #2 (Buy).
Arista Networks, Inc. (ANET - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last reported quarter, it delivered an earnings surprise of 14.83%. It provides 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.
Zillow Group, Inc. (ZG - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters.
The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor. Solid growth in the Premier Agent business is driving growth in the Residential segment.
Workday Inc. (WDAY - Free Report) carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.