Network gear maker Ubiquiti beats Q4 revenue, adjusted EPS estimates; authorizes stock buyback
Overview
Ubiquiti Q4 fiscal 2025 revenue rises 49.6% yr/yr, beating analyst expectations
Adjusted EPS for Q4 fiscal 2025 beats estimates, reaching $3.54
Company announces $500 mln stock repurchase program
Outlook
Company plans regular quarterly dividends of at least $0.80 per share in FY 2026
Ubiquiti authorizes $500 mln stock repurchase program
Result Drivers
ENTERPRISE TECHNOLOGY - Revenue growth driven by Enterprise Technology platform, contributing significantly to overall increase
GROSS MARGIN IMPROVEMENT - Favorable product mix and reduced inventory charges led to higher gross margins
TAX BENEFIT - Deferred tax asset recognition contributed to increased net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $759.20 mln | $634.10 mln (2 Analysts) |
Q4 Adjusted EPS | Beat | $3.54 | $2.23 (1 Analyst) |
Q4 EPS |
| $4.41 |
|
Q4 Adjusted Net Income |
| $214.40 mln |
|
Q4 Gross Margin |
| 45.1% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy."
Wall Street's median 12-month price target for Ubiquiti Inc is $343.50, about 13.7% below its August 21 closing price of $390.57
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 39 three months ago
Press Release: ID:nBw4hmtT7a
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