Extreme Networks (NASDAQ:EXTR) Issues FY 2027 Earnings Guidance

Key Points

• Extreme Networks issued FY 2027 EPS guidance of $1.28–$1.33, above the $1.21 analyst consensus, while revenue guidance of approximately $1.4 billion matched expectations. Q1 FY 2027 EPS guidance was set at $0.27–$0.29.
• The company’s latest quarter beat estimates, with EPS of $0.32 versus $0.29 expected and revenue of $338.55 million versus $332.49 million. Revenue increased 10.3% year over year.
• Analyst sentiment remains generally positive, with six Buy ratings and two Holds and an average price target of $32.83; however, insiders have sold more than 422,000 shares worth approximately $11.9 million over the past 90 days.

Extreme Networks (NASDAQ:EXTR - Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 1.280-1.330 for the period, compared to the consensus EPS estimate of 1.210. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.4 billion. Extreme Networks also updated its Q1 2027 guidance to 0.270-0.290 EPS.

Wall Street Analyst Weigh In

Several research firms have weighed in on EXTR. Wall Street Zen lowered shares of Extreme Networks from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. B. Riley Financial reissued a "buy" rating on shares of Extreme Networks in a report on Thursday, April 30th. UBS Group set a $28.00 price objective on shares of Extreme Networks in a research report on Thursday, April 30th. Weiss Ratings raised Extreme Networks from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, July 6th. Finally, Rosenblatt Securities lifted their target price on Extreme Networks from $29.00 to $39.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $32.83.

Extreme Networks Price Performance

NASDAQ EXTR opened at $32.34 on Wednesday. The business has a 50 day simple moving average of $30.37 and a 200 day simple moving average of $21.73. Extreme Networks has a 52-week low of $13.48 and a 52-week high of $33.73. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.78 and a current ratio of 0.91. The stock has a market cap of $4.23 billion, a price-to-earnings ratio of 269.50, a PEG ratio of 1.84 and a beta of 1.79.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.32 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.03. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. The firm had revenue of $338.55 million for the quarter, compared to analyst estimates of $332.49 million. During the same quarter in the previous year, the firm posted $0.25 earnings per share. The business's revenue was up 10.3% on a year-over-year basis. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. Analysts anticipate that Extreme Networks will post 0.53 earnings per share for the current fiscal year.

Insider Activity at Extreme Networks

In related news, Director Kathleen M. Holmgren sold 19,521 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $24.78, for a total value of $483,730.38. Following the sale, the director directly owned 219,308 shares of the company's stock, valued at approximately $5,434,452.24. The trade was a 8.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Edward Meyercord sold 50,000 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $29.79, for a total transaction of $1,489,500.00. Following the completion of the transaction, the chief executive officer directly owned 1,596,475 shares of the company's stock, valued at approximately $47,558,990.25. The trade was a 3.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 422,182 shares of company stock valued at $11,905,205. Insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of EXTR. Alyeska Investment Group L.P. raised its position in Extreme Networks by 301.9% in the 4th quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company's stock valued at $49,479,000 after buying an additional 2,232,373 shares during the last quarter. Jain Global LLC acquired a new position in Extreme Networks during the 4th quarter worth approximately $17,361,000. Millennium Management LLC grew its stake in shares of Extreme Networks by 163.0% during the 1st quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock worth $16,675,000 after acquiring an additional 781,103 shares in the last quarter. Southernsun Asset Management LLC grew its stake in shares of Extreme Networks by 46.9% during the 4th quarter. Southernsun Asset Management LLC now owns 1,970,886 shares of the technology company's stock worth $32,815,000 after acquiring an additional 629,486 shares in the last quarter. Finally, Cubist Systematic Strategies LLC bought a new position in shares of Extreme Networks during the 2nd quarter worth approximately $11,265,000. 91.05% of the stock is currently owned by institutional investors.

About Extreme Networks

Extreme Networks, Inc NASDAQ: EXTR is a global provider of end-to-end networking solutions designed to support enterprise, data center, and service provider environments. The company's product portfolio encompasses high-performance wired and wireless access switches, routers, network security appliances, and software-defined networking (SDN) tools. Driven by a cloud-native management architecture, Extreme's Intelligent Edge Platform integrates network analytics, automation and orchestration capabilities to help organizations optimize performance, reduce operational complexity and strengthen security.

Since its founding in the mid-1990s and subsequent public listing in 1999, Extreme Networks has expanded its technology footprint through targeted acquisitions.

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