Zacks Research Weighs in on Ubiquiti's Q1 Earnings (NYSE:UI)

Key Points

• Zacks Research raised Ubiquiti’s Q1 2027 EPS estimate to $3.82 from $3.71 and projects full-year 2027 EPS of $16.94. The firm maintains a “Hold” rating.
• Ubiquiti exceeded expectations in its latest quarter, reporting $4.73 EPS versus the $4.03 consensus and revenue of $937.32 million compared with estimates of $850.50 million.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $734.50 price target. Ubiquiti also increased its quarterly dividend to $1.00 per share, producing a 0.7% yield.

Ubiquiti Inc. (NYSE:UI - Free Report) - Investment analysts at Zacks Research raised their Q1 2027 earnings estimates for Ubiquiti in a research note issued on Friday, September 11th. Zacks Research analyst Team now anticipates that the company will post earnings of $3.82 per share for the quarter, up from their previous estimate of $3.71. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Ubiquiti's current full-year earnings is $15.53 per share. Zacks Research also issued estimates for Ubiquiti's Q2 2027 earnings at $4.00 EPS, Q4 2027 earnings at $5.09 EPS, FY2027 earnings at $16.94 EPS, Q1 2028 earnings at $4.30 EPS, Q2 2028 earnings at $4.05 EPS, Q3 2028 earnings at $4.74 EPS, Q4 2028 earnings at $5.71 EPS and FY2028 earnings at $18.80 EPS.

Ubiquiti (NYSE:UI - Get Free Report) last posted its quarterly earnings data on Friday, August 21st. The company reported $4.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.03 by $0.70. The company had revenue of $937.32 million during the quarter, compared to analyst estimates of $850.50 million. Ubiquiti had a return on equity of 85.57% and a net margin of 29.33%.During the same quarter last year, the company earned $4.41 earnings per share.

A number of other equities research analysts have also weighed in on the company. Weiss Ratings lowered Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, August 21st. Barclays cut their target price on shares of Ubiquiti from $672.00 to $489.00 and set an "underweight" rating on the stock in a report on Monday, August 24th. Finally, BWS Financial reaffirmed a "buy" rating and set a $980.00 price target on shares of Ubiquiti in a research report on Thursday, August 27th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Ubiquiti presently has a consensus rating of "Hold" and a consensus target price of $734.50.

Ubiquiti Stock Up 1.3%

Ubiquiti stock opened at $570.04 on Thursday. The firm has a fifty day simple moving average of $561.34 and a two-hundred day simple moving average of $675.79. Ubiquiti has a twelve month low of $500.23 and a twelve month high of $1,099.99. The company has a market capitalization of $34.50 billion, a PE ratio of 35.96 and a beta of 1.31.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in UI. Corient Private Wealth LLC boosted its holdings in shares of Ubiquiti by 73,940.4% in the 4th quarter. Corient Private Wealth LLC now owns 1,113,568 shares of the company's stock valued at $616,193,000 after buying an additional 1,112,064 shares in the last quarter. BlackRock Inc. purchased a new stake in Ubiquiti during the second quarter valued at approximately $163,010,000. Bank of New York Mellon Corp acquired a new stake in Ubiquiti in the second quarter valued at approximately $30,086,000. Norges Bank purchased a new position in shares of Ubiquiti in the 4th quarter valued at approximately $28,527,000. Finally, Walleye Capital LLC purchased a new position in shares of Ubiquiti in the second quarter worth $27,413,000. 4.00% of the stock is owned by hedge funds and other institutional investors.

Ubiquiti Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 31st were given a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, August 31st. This is an increase from Ubiquiti's previous quarterly dividend of $0.80. Ubiquiti's payout ratio is presently 25.24%.

About Ubiquiti

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, gateways, switches, security cameras, access-control systems and network management software.

The company markets its products through several technology platforms and brands, including UniFi for enterprise and small-business networking, and airMAX, LTU and related products for wireless internet service providers. Ubiquiti also offers consumer-focused networking products under the AmpliFi brand and operates software and services designed to help customers manage their networks.

Founded in 2003 by Robert Pera, Ubiquiti serves customers internationally through distributors, online channels and other sales partners.

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