Fiber optic products maker Clearfield's Q1 sales beat expectations

Overview

• Fiber connectivity firm's fiscal Q1 net sales rose 16%, beating analyst expectations

• Gross margin improved by 4 percentage points to 33.2%

• Company repurchased $5.2 mln in shares during the quarter

Outlook

• Clearfield reiterates fiscal 2026 net sales guidance of $160 mln to $170 mln

• Company anticipates Q2 fiscal 2026 net sales of $32 mln to $35 mln

• Clearfield sees fiscal 2026 EPS between $0.48 and $0.62

Result Drivers

• COMMUNITY BROADBAND - Increased sales in Community Broadband sector drove net sales growth, recovering from BEAD program delays

• GROSS MARGIN IMPROVEMENT - Gross margin improved due to better overhead absorption and inventory utilization

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "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 Clearfield Inc is $44.00, about 46% above its February 3 closing price of $30.13

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 56 three months ago

Press Release: ID:nGNX50ZYr7

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