Calix (NYSE:CALX) Announces Earnings Results

Key Points

• Calix reported a quarterly beat with $0.40 EPS vs. $0.37 expected and revenue of $279.98M (vs. $277.5M), while net margin was 1.79% and ROE 2.31%.
• Shares fell about 3.5% to $49.74 on the day despite the beat; the company has a market cap of $3.21B and a high trailing P/E of ~199, with a 52-week range of $35.70–$71.22.
• The board approved a $125 million stock buyback (about 3.4% of shares) and Wall Street consensus is a "Moderate Buy" with an average price target of $71.67; institutional investors own roughly 98% of the stock.

Calix (NYSE:CALX - Get Free Report) posted its quarterly earnings data on Tuesday. The communications equipment provider reported $0.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.37 by $0.03, FiscalAI reports. Calix had a net margin of 1.79% and a return on equity of 2.31%. The company had revenue of $279.98 million for the quarter, compared to the consensus estimate of $277.50 million.

Calix Stock Down 3.5%

Shares of Calix stock traded down $1.81 during trading on Tuesday, reaching $49.74. The company's stock had a trading volume of 1,280,856 shares, compared to its average volume of 1,053,369. The business's 50-day moving average price is $51.07 and its 200-day moving average price is $54.67. The firm has a market cap of $3.21 billion, a PE ratio of 198.94 and a beta of 1.53. Calix has a 52 week low of $35.70 and a 52 week high of $71.22.

Calix declared that its board has approved a stock buyback plan on Wednesday, January 28th that authorizes the company to repurchase $125.00 million in outstanding shares. This repurchase authorization authorizes the communications equipment provider to purchase up to 3.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Calix

Several institutional investors and hedge funds have recently bought and sold shares of CALX. Royal Bank of Canada lifted its position in Calix by 11.0% during the first quarter. Royal Bank of Canada now owns 28,022 shares of the communications equipment provider's stock worth $993,000 after purchasing an additional 2,773 shares during the period. AQR Capital Management LLC lifted its position in Calix by 304.1% during the first quarter. AQR Capital Management LLC now owns 44,874 shares of the communications equipment provider's stock worth $1,538,000 after purchasing an additional 33,769 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Calix by 10.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 176,328 shares of the communications equipment provider's stock worth $6,249,000 after acquiring an additional 16,905 shares during the last quarter. Intech Investment Management LLC lifted its holdings in shares of Calix by 26.8% in the first quarter. Intech Investment Management LLC now owns 32,923 shares of the communications equipment provider's stock worth $1,167,000 after acquiring an additional 6,962 shares during the last quarter. Finally, Amundi lifted its holdings in shares of Calix by 16,478.0% in the second quarter. Amundi now owns 9,781 shares of the communications equipment provider's stock worth $518,000 after acquiring an additional 9,722 shares during the last quarter. Institutional investors own 98.14% of the company's stock.

Wall Street Analyst Weigh In

CALX has been the topic of a number of recent research reports. Craig Hallum set a $60.00 target price on shares of Calix in a report on Friday, January 30th. Rosenblatt Securities restated a "buy" rating and set a $70.00 target price on shares of Calix in a report on Tuesday, March 31st. JPMorgan Chase & Co. lowered their target price on shares of Calix from $90.00 to $70.00 and set an "overweight" rating on the stock in a report on Thursday, April 16th. Wall Street Zen downgraded shares of Calix from a "strong-buy" rating to a "buy" rating in a report on Saturday. Finally, Weiss Ratings upgraded shares of Calix from a "sell (d-)" rating to a "hold (c-)" rating in a report on Monday, February 23rd. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Calix currently has a consensus rating of "Moderate Buy" and a consensus price target of $71.67.

Calix Company Profile

Calix, Inc is a provider of cloud and software platforms, systems, and services that enable broadband service providers to transform their networks and subscriber experiences. The company's flagship Calix Cloud platform delivers real-time analytics, automation and intelligence designed to simplify network operations, improve service agility and drive revenue growth. Calix also offers a comprehensive suite of premises and access systems, including broadband access nodes, fiber-to-the-home optics and residential gateways under the GigaSpire brand.

Through its software-defined network architecture, Calix helps service providers virtualize key network functions and introduce new services with minimal capital expenditure.

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