On Feb 11, Zacks Investment Research upgraded
Ubiquiti Networks Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Ubiquiti has been witnessing rising earnings estimates on the
back of strong second-quarter 2014 results. Moreover, this
well-known wireless equipment provider delivered positive
earnings surprises across all the last 4 quarters with an average
beat of 11.3%. The long-term expected earnings growth rate for
this stock is 35.5%
Ubiquiti Networks reported fiscal second-quarter (ended Dec
31) results on Feb 6. Non-GAAP earnings per share came in at 47
cents, surpassing the Zacks Consensus Estimate by 6.8% and
year-ago earnings of 2 cents.
Development in the company's core business primarily drove the
earnings. Ubiquiti's consistent focus on expanding services by
increasing investments in innovation and development was a key
growth driver. Management's executive abilities and opportunities
in the enterprise business also contributed to the strong
Revenues also surged a robust 84.8%, due to increased
transaction volumes and addition of new services for existing
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.
Following the upbeat second-quarter results, the Zacks
Consensus Estimate for third-quarter 2014 rose 11.1% to 50 cents
per share as 1 of the estimates was revised higher in the last 7
days. However, the estimates for fiscal 2014 and 2015 remained
stagnant at $1.81 and $2.09, respectively in the last 7 days.
Other Stocks to Consider
Other stocks in the wireless equipment market worth
Juniper Networks, Inc.
). While ShoreTel carries a Zacks Rank #1, Harris Corporation and
Juniper Networks hold a Zacks Rank #2 (Buy).
JUNIPER NETWRKS (JNPR): Free Stock Analysis
SHORETEL INC (SHOR): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
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