Ubiquiti (UBNT) Beats On Q3 Earnings & Revenues, Grows Y/Y
Zacks Investment Research | May 04, 2017 09:28PM ET
After a rare miss in the last reported quarter, Ubiquiti Networks, Inc. (NASDAQ:UBNT) returned to its earnings streak with a beat in the recently reported third-quarter fiscal 2017. The company reported earnings per share of 77 cents, which trumped the Zacks Consensus Estimate of 68 cents by 13.2%.
On a non-GAAP basis, the company’s earnings per share were 78 cents, reflecting 23.8% growth year over year. Ubiquiti’s overarching business model and impressive top-line growth drove the stellar performance during the quarter.
Inside the Headlines
Total revenue of $218.3 million steered past the company’s projected range of $210–$220 million. Also, it grew 30.4% on a year-over-year basis and topped the Zacks Consensus Estimate of $211 million comfortably. Solid demand of all product lines across each end market proved conducive to top-line growth. This is also the first time in the company’s history when Enterprise Technology revenues surpassed the Service Provider revenues.
The company’s Enterprise Technology segment continued to fare remarkably well, with revenues soaring a whopping 59.6% year over year to $113.6 million. The striking growth was fueled by the entire UniFi product family. Disruptive pricing and higher average selling prices of recently launched products proved conducive to growth. Also, high demand for switches, security gateways, cameras and other complementary products in the international market also helped drive top-line growth.
Even the Service Provider Technology segment achieved growth of 8.8% year over year, generating $104.7 million. Higher sales of new offerings to the Ubiquiti community of service providers drove sales growth of this segment.
On a geographic basis, North America charted strongest growth, as revenues surged 78.6% compared to the prior-year quarter figure. South American sales rose an impressive 80.5% year over year. In addition, the Europe, Middle East and Africa, and the Asia Pacific regions witnessed 19.8% and 15.8% growth, respectively, on a year-over-year basis.
Gross margin for the quarter shrunk 390 basis points year over year to 45.4%, largely on account of unfavorable product mix.
Ubiquiti Networks, Inc. Price, Consensus and EPS Surprise
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