Extreme Networks (NASDAQ:EXTR) Updates Q1 2027 Earnings Guidance

Key Points

• Extreme Networks raised its Q1 FY2027 outlook to EPS of $0.270–$0.290 and revenue of $334 million–$339 million, both above analyst consensus estimates of $0.260 EPS and $332.3 million revenue.
• The company reported quarterly EPS of $0.32, beating expectations by $0.03, while revenue rose 10.3% year over year to $338.55 million.
• Shares opened at $32.34 after gaining 7.9%; analysts maintain a “Moderate Buy” consensus rating with an average price target of $32.83, though insiders have sold more than $11.9 million in stock over the past three months.

Extreme Networks (NASDAQ:EXTR - Get Free Report) updated its first quarter 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 0.270-0.290 for the period, compared to the consensus EPS estimate of 0.260. The company issued revenue guidance of $334.0 million-$339.0 million, compared to the consensus revenue estimate of $332.3 million. Extreme Networks also updated its FY 2027 guidance to 1.280-1.330 EPS.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on EXTR. B. Riley Financial reiterated a "buy" rating on shares of Extreme Networks in a 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. UBS Group set a $28.00 target price on Extreme Networks in a report on Thursday, April 30th. Bank of America raised their price target on Extreme Networks from $28.00 to $33.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. Finally, Needham & Company LLC lifted their price target on Extreme Networks from $26.00 to $38.00 and gave the stock a "buy" rating in a research note on Wednesday, July 22nd. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $32.83.

Extreme Networks Stock Up 7.9%

Shares of NASDAQ:EXTR opened at $32.34 on Wednesday. Extreme Networks has a 1 year low of $13.48 and a 1 year high of $33.73. The company has a market cap of $4.23 billion, a PE ratio of 269.50, a P/E/G ratio of 1.84 and a beta of 1.79. The company has a debt-to-equity ratio of 1.89, a current ratio of 0.91 and a quick ratio of 0.78. The stock's 50-day moving average is $30.37 and its 200 day moving average is $21.73.

Extreme Networks (NASDAQ:EXTR - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03. The business had revenue of $338.55 million during the quarter, compared to analysts' expectations of $332.49 million. Extreme Networks had a return on equity of 81.88% and a net margin of 1.30%.The business's revenue was up 10.3% on a year-over-year basis. During the same quarter last year, the business posted $0.25 EPS. 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. Sell-side analysts anticipate that Extreme Networks will post 0.53 EPS for the current year.

Insiders Place Their Bets

In other Extreme Networks news, CEO Edward Meyercord sold 50,000 shares of the company's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $29.79, for a total value of $1,489,500.00. Following the completion of the transaction, the chief executive officer directly owned 1,596,475 shares in the company, valued at approximately $47,558,990.25. This represents a 3.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin R. Rhodes sold 35,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $30.43, for a total transaction of $1,065,050.00. Following the completion of the sale, the chief financial officer directly owned 151,296 shares of the company's stock, valued at approximately $4,603,937.28. This represents a 18.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 422,182 shares of company stock worth $11,905,205. Insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Alyeska Investment Group L.P. lifted its stake in shares of 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 purchasing an additional 2,232,373 shares during the period. Jain Global LLC bought a new stake in shares of Extreme Networks during the fourth quarter valued at approximately $17,361,000. Millennium Management LLC grew its stake in Extreme Networks by 163.0% in the first quarter. Millennium Management LLC now owns 1,260,362 shares of the technology company's stock worth $16,675,000 after purchasing an additional 781,103 shares during the period. Southernsun Asset Management LLC grew its stake in Extreme Networks by 46.9% in the fourth quarter. Southernsun Asset Management LLC now owns 1,970,886 shares of the technology company's stock worth $32,815,000 after purchasing an additional 629,486 shares during the period. Finally, Cubist Systematic Strategies LLC bought a new position in Extreme Networks in the second quarter worth $11,265,000. Hedge funds and other institutional investors own 91.05% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source