Aviat Networks (NASDAQ:AVNW) Releases Quarterly Earnings Results, Misses Expectations By $0.18 EPS

Key Points

• Aviat Networks missed quarterly expectations: EPS was $0.12 versus the $0.30 consensus, while revenue of $101.97 million fell short of the $103.55 million forecast.
• Supply disruptions pressured performance: Component shortages and flooding in Thailand reduced revenue by an estimated $10 million; revenue and non-GAAP gross margin also declined year over year.
• Demand indicators remained strong: Bookings topped $150 million, up 75% year over year, and backlog rose 19% sequentially. Aviat maintained its fiscal 2027 adjusted EBITDA outlook of $50 million–$55 million and forecast revenue of $450 million–$475 million.

Aviat Networks (NASDAQ:AVNW - Get Free Report) announced its quarterly earnings results on Tuesday. The communications equipment provider reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.30 by ($0.18), FiscalAI reports. Aviat Networks had a net margin of 0.58% and a return on equity of 5.85%. The business had revenue of $101.97 million for the quarter, compared to analysts' expectations of $103.55 million.

Here are the key takeaways from Aviat Networks' conference call:

• Demand and backlog strengthened: First-quarter bookings exceeded $150 million, up 75% year over year, with a book-to-bill ratio above 1.5 and backlog up $70 million, or 19%, sequentially. Management said demand for its major MDU program exceeds what it can currently serve because of component constraints.
• Supply issues weighed on quarterly results: Revenue declined to $102.0 million from $107.3 million a year earlier, while non-GAAP gross margin fell to 29.6% from 33.8%. Management estimated component shortages and a Thailand flood together reduced revenue by about $10 million, and said competition for components is likely to persist near term.
• Guidance reflects demand and customer mix changes: Aviat set fiscal 2027 revenue guidance at $450 million–$475 million and maintained adjusted EBITDA guidance of $50 million–$55 million. It plans to exit $25 million–$30 million of low-margin APAC revenue, which management expects to have no profitability impact and may improve gross margin by 1%–2%.
• Product momentum and new opportunities: Aprisa bookings rose 61% year over year, and the company launched LEO satellite integration and a quad all-outdoor radio. Aviat also received its first BEAD-related order, though management expects the program to contribute mainly in calendar 2027 and beyond.

Aviat Networks Stock Down 9.3%

AVNW stock traded down $1.78 on Tuesday, reaching $17.35. 96,839 shares of the company traded hands, compared to its average volume of 158,915. The company has a market cap of $223.12 million, a P/E ratio of 92.71 and a beta of 0.77. The firm has a fifty day simple moving average of $19.83 and a 200-day simple moving average of $21.07. Aviat Networks has a one year low of $13.92 and a one year high of $27.02. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.97 and a quick ratio of 1.66.

Analyst Ratings Changes

Several brokerages have issued reports on AVNW. Roth Capital reaffirmed a "buy" rating and set a $38.00 price target (up from $34.00) on shares of Aviat Networks in a research note on Friday, August 28th. Wall Street Zen upgraded Aviat Networks from a "hold" rating to a "buy" rating in a research report on Saturday, October 3rd. Weiss Ratings downgraded Aviat Networks from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 30th. B. Riley Financial reaffirmed a "buy" rating and issued a $33.00 target price (up from $28.00) on shares of Aviat Networks in a research note on Friday, August 28th. Finally, Zacks Research upgraded shares of Aviat Networks from a "strong sell" rating to a "hold" rating in a research report on Thursday, November 5th. Eight investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $32.71.

Insider Buying and Selling at Aviat Networks

In other news, VP Erin Boase sold 1,347 shares of the company's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $19.69, for a total value of $26,522.43. Following the completion of the sale, the vice president directly owned 28,275 shares in the company, valued at $556,734.75. This represents a 4.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Pete A. Smith sold 14,264 shares of the firm's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $19.69, for a total value of $280,858.16. Following the completion of the transaction, the chief executive officer directly owned 367,840 shares in the company, valued at $7,242,769.60. This trade represents a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 16,240 shares of company stock valued at $319,766 in the last 90 days. Company insiders own 5.70% of the company's stock.

Aviat Networks Company Profile

Aviat Networks, Inc provides wireless networking solutions for communications service providers, government agencies and enterprises. The company specializes in mission-critical connectivity for applications where reliable, high-capacity communications are essential, including telecommunications, public safety, utilities, transportation and defense.

Its product portfolio includes microwave and millimeter-wave wireless transmission systems, routers, access and aggregation equipment, network management software and related cybersecurity solutions.

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