Ubiquiti Networks Inc
) reported impressive fourth-quarter and fiscal 2014 results. For
the fourth quarter, the company reported earnings of 56 cents a
share which was 12% above the Zacks Consensus Estimate of 50 cents
a share. Meanwhile, quarterly earnings were up 69.7% year over year
from 33 cents reported in the prior-year quarter.
Profits for the quarter were primarily driven by strong
technological execution and strategic product launches.
Revenues for the quarter totaled $156.0 million, exhibiting a
robust 54% rise from $101.2 million in the year-earlier quarter. On
sequential basis as well, revenues were up from $148.3 million.
Revenues also surpassed the Zacks Consensus Estimate of $148.
Revenue growth was supported by strong performance across both the
Revenues in the Service Provider Technology segment grew 37.6%
year over year to $124 million while on a sequential basis revenues
Enterprise Technology revenues for the quarter scaled 188.3%
year over year to $32 million. On a sequential basis revenues rose
Gross profit for the quarter grew year over year to $68.9
million while gross margin improved 30 basis points (bps) to 44.2%.
Operating margin rose 104 bps to 33.9% in the fourth
Cash and Balance Sheet
Net cash flow from operations for the fourth quarter was $55.8
million compared with $46.2 million in the fourth quarter of fiscal
2013. The upside was driven by improvement in the lead times to
customers and a reduction in inventory. Cash and cash equivalents
as of Jun 30, 2014 were $347.1 million as against $227.8 million as
of Jun 30, 2013.
Following its fourth-quarter earnings release, the company
provided guidance for the first quarter of 2015. Revenues for the
first quarter are expected in the range of $156 million to 161
million while non-GAAP earnings are expected in the band of 52
cents to 54 cents a share.
Other Stocks to Consider
Ubiquiti currently has a Zacks Rank #3 (Hold). Some
better-ranked stocks in the industry include DragonWave Inc (
), Ericsson (
) and ZTE Corp. (
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ERICSSON LM ADR (ERIC): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
DRAGONWAVE INC (DRWI): Free Stock Analysis
ZTE CORP U-ADR (ZTCOY): Get Free Report
To read this article on Zacks.com click here.