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<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The actions had & nbsp;dropped nearly 11% When markets close for the weekend, some investors scratch their heads to find out why. Let's explore to understand what Ubiquiti Networks had to say and why the title collapsed. "Data-reactid =" 12 "> Stocks dropped by nearly 11% as markets close this weekend, leaving investors scratching their heads to understand why: dig to better understand what Ubiquiti Networks had to say and why the title has collapsed in reaction.
Ubiquiti Networks wireless hardware plugged into an electrical outlet in a contemporary kitchen.
SOURCE OF IMAGE: UBIQUITI NETWORKS
Ubiquiti Networks results: raw numbers
| Metric |
Q3 fiscal year 2019 * |
Q3 fiscal 2018 |
Growth from one year to the next |
|---|---|---|---|
|
Returned |
$ 284.9 million |
$ 250.4 million |
13.8% |
|
GAAP net income |
$ 88.3 million |
$ 102.7 million |
(14%) |
|
Earnings (loss) GAAP per share |
$ 1.25 |
$ 1.32 |
(5.3%) |
DATA SOURCE: UBIQUITI NETWORKS. * For the quarter ended March 31, 2019. GAAP = generally accepted accounting principles.
What happened with Ubiquiti Networks this quarter?
- On an adjusted (non-GAAP) basis, which excludes items such as stock-based compensation, net income was $ 88.9 million, or $ 1.26 per share, up 28.6% compared to $ 0.98 per share for the same period last year.
- Ubiquiti Networks does not provide specific quarterly financial guidance. Thus, although we generally did not pay much attention to Wall Street claims, these results were technically mixed with consensus estimates of adjusted earnings of less than $ 1.10 per share and from a business turnover slightly higher than 286 million USD.
- Gross margin increased 90 basis points year-over-year to 46.6%, thanks to a favorable product mix and the range of 42% to 45% of the short-term management objective. Ubiquiti mitigating the impact of Chinese tariffs, she reiterated her long-term goal of maintaining gross margin between 45% and 50%.
- Service provider technology products, including airMAX, airFiber, EdgeMAX and uFiber products, returned to growth (down 5.6% from last quarter of the previous year), up 8.4% to $ 109.4 million.
- The business technology sector's revenue – including UniFi, mFi, AmpliFi and FrontRow – rose 17.4% to $ 175.5 million.
- By geographic region, sales in North America increased by 15.1% to $ 109.1 million, sales in South America grew by 15.6% to just under $ 30 million, EMEA (Europe, Middle East and Africa) from 10.5% to 125.7 million revenues increased 23.4% to $ 27.1 million.
- Ubiquiti repurchased 91,249 common shares for $ 9 million, for an average price of $ 98.63 per share.
Looking forward to
<p class = "web-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Ubiquiti Networks generally does not hold quarterly teleconferences with investors , and this quarter was no different, but based on the performance of the first three quarters of the year, it now expects full year results to be in the upper end of the range. from its previous perspectives. initiated last November, more recently reaffirmed in Februaryand called for a turnover of between $ 1.1 billion and $ 1.2 billion with earnings per share of between $ 4.00 and $ 4.80. & nbsp; "data-reactid =" 39 "> Ubiquiti Networks generally does not hold quarterly teleconferences with investors, and this quarter has not been different however, based on its performance over the first three quarters of the year. fiscal year, it now expects annual results to reach the high end of the previous outlook.For recall, forecasts were initiated last November, most recently reaffirmed in February, and called for revenue of 1, $ 1 billion to $ 1.2 billion with a profit of 4.00 to 4.80 dollars per share.
So what is the problem?
First, the increase in the US tariff rate (from 10% to 25%) of hundreds of billions of dollars in goods imported from China has not helped – although, as I indicated above, Ubiquiti Networks insists that it should be able to mitigate much of the headwind.
In addition, Ubiquiti Networks recorded a fifth consecutive quarter of better than expected results, leaving the stock up more than 90% in the year leading up to today 's report. It is therefore perhaps not surprising that most analysts have already modeled full-year revenue and earnings in the high range of this old indicator.
It would probably have taken an absolute report today to convince the market to ride even higher shares of Ubiquiti.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 44 "> More from The Motley Fool
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Steve Symington has no position in any of the actions mentioned. Motley Fool owns shares and recommends Ubiquiti Networks. The Motley Fool has a disclosure policy."data-reactid =" 52 ">Steve Symington has no position in any of the mentioned actions. Motley Fool owns shares and recommends Ubiquiti Networks. Motley Fool has a disclosure policy.
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