Ubiquiti Networks Inc.
) reached a 52-week high of $55.57 on Wednesday, Mar 19, 2014.
However, the stock closed at $54.85, representing a robust
one-year return of about 310.25% and a decent year-to-date return
of about 20.02%. Average volume of shares traded over the last
three months is approximately 1,288,730.
Strong second-quarter 2014 results, growth in the company's
core business, consistent focus on expanding services and strong
potential in the enterprise business are also some of the growth
catalysts for the company.
Ubiquiti delivered positive earnings surprises in the last
four quarters with an average beat of 11.3%. This Zacks Rank #2
(Buy) company has a market cap of $4.82 billion and a long-term
expected earnings growth rate of 26.3%.
Ubiquiti Networks primarily develops high performance
networking technology for its service providers. The company's
technology platforms essentially focus on delivering highly
advanced and easily deployable solutions that appeal to a broad
customer base in underserved and underpenetrated markets. The
company's differentiated business model has enabled it to sever
traditional barriers such as high product and network deployment
costs by offering solutions with disruptive price-performance
Further, the company offers a broad portfolio of networking
products and solutions for service providers. Ubiquiti's service
provider segment offers carrier-class network infrastructure for
fixed wireless broadband, wireless backhaul systems and routing,
while its enterprise product segment provides wireless LAN
infrastructure, video surveillance products and
machine-to-machine communication components. The company's
products are well differentiated given its proprietary software
protocol innovation, firmware expertise and hardware design
Therefore, this well-classified segregation allows Ubiquiti's
portfolio to meet the demands of video, voice and data
applications at competitive prices.
This apart, the company also launched Ubiquiti World Network
(UWN), a wireless Internet platform. UWN is a consortium of
independent Internet service providers (ISP) across the globe. It
was designed to provide the ISPs with a unified platform to
foster growth and innovation in the wireless industry while
catering to consumers' needs.
Strong 2Q14 Earnings
Ubiquiti Networks, Inc. reported strong second-quarter fiscal
2014 results with non-GAAP earnings of 48 cents per share,
exceeding the Zacks Consensus Estimate of 44 cents and the
prior-year quarter earnings of 2 cents. The company reported
non-GAAP net income of $42.6 million compared with $18.3 million
in the year-ago quarter, reflecting an increase of 132.5%.
Ubiquiti's total revenue surged 84.8% year over year and 6.7%
sequentially to $138.4 million. The growth was driven by
increased transaction volumes and addition of new services for
existing customers. Additionally, strong performances in the
Enterprise Technology segment contributed to top-line growth.
Revenues beat the Zacks Consensus Estimate of $132 million by
Over the last 60 days, all the 3 brokers covering the stock
have raised their estimates upward for the current and next
quarter. For 2014 as well, all the 3 estimates have been revised
upward. Thus, the Zacks Consensus Estimate for the current and
the next quarter grew 6.7% to 48 cents and 4.3% to 49 cents,
For fiscal 2014, estimates increased 3.9% to $1.88 while for
2015, estimates were up 2.4% to $2.14 a share.
Other Stocks to Consider
Investors interested in the heavy industries sector can
Juniper Networks Inc.
). Juniper and Shoretel carry a Zacks Rank #1 (Strong Buy) while
Harris carries a Zacks Rank #23 (Buy).
HARRIS CORP (HRS): Free Stock Analysis Report
JUNIPER NETWRKS (JNPR): Free Stock Analysis
SHORETEL INC (SHOR): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
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