Avid Technology’s AVID shares have risen 23.3% year to date compared with the Zacks Computer and Technology sector, which has increased 19.7% in the same time frame.
The recent rise in Avid’s share price reflects the rapid adoption of its digital media platform and workflow solutions, innovative product releases and recovery of ongoing supply-chain disruptions. These factors have had a positive impact on its revenue growth.
Avid’s success is heavily attributable to its innovative product pipeline which is driving the top line. In response to the evolving market demand, it announced the availability of Avid Nexis Cloud Nearline Storage and Avid Stream IO.
Avid Nexis Cloud Nearline Storage brings cost-efficient nearline storage to cloud-based content creation workflows. It features high-performance storage capabilities enabling content creation teams to easily access online content libraries.
Avid Technology, Inc. Price and Consensus
Avid Technology, Inc. price-consensus-chart | Avid Technology, Inc. Quote
Avid Stream IO allows media companies to increase efficiency by combining different ingest sources in a single configuration. The solution supports all common video formats, codecs and resolutions, enabling customers to leverage new and emerging technologies within their production workflows.
Earlier this month, Avid introduced its new Pro Tools MTRX II and MTRX Thunderbolt 3 module designed for post-production users to further enhance audio capabilities.
Strong Product Portfolio to Drive AVID’s Customer Base
AVID is riding on a strong product portfolio with Pro Tools, MediaCentral and Media Composer, providing creators with state-of-the-art media creation workflows. With the launch of its new innovative solutions, it expects to expand its clientele, thereby driving the top line.
Leading broadcasters like TelevisaUnivision deployed Avid’s media and storage solutions on Google Cloud to optimize content production workflows across its media and content portfolio. This enables the company to meet spikes in content demand and maximize cost efficiency.
Its differentiated creative software tools have helped Avid win clients like Warner Bros Discovery WBD, Comcast CMCSA and Gray Television GTN.
Warner's HBO, Comcast's NBC Universal and Gray Television utilizes Avid’s media tools and iNEWS newsroom computer system to overcome technology and media distribution challenges. These powerful media production and storage software allow them to efficiently scale production and post-production capacity.
AVID’s Positive Business Outlook
Avid expects strong growth in subscription and maintenance revenues due to investments in music creation and digital innovation as well as customer cycle upgradation in 2023. This will address the changing business and technology requirements and support long-term growth plans.
This Zacks Rank #3 (Hold) company expects first-quarter 2023 earnings in the range of 21-29 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the first quarter of 2023, Avid expects revenues between $97 million and $105 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $100.84 million, indicating 0.18% growth from the year-ago quarter’s reported figure.
The consensus mark for first-quarter 2023 earnings remained unchanged at 25 cents per share in the past 30 days.
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