Calix (NYSE:CALX) Stock Falls 6.8% - Time to Sell?

Key Points

• Calix shares fell 6.8% to about $33.66 despite reporting adjusted EPS of $0.44, above the $0.42 consensus estimate. The decline likely reflected revenue of $301.7 million coming in below expectations and concerns about the company’s modest 4.61% net margin.
• Fourth-quarter revenue guidance of $311 million to $317 million and full-year 2026 revenue guidance of approximately $1.2 billion were broadly in line with analyst expectations, offering limited evidence of accelerating growth.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $57.40, although Calix trades at a relatively high P/E ratio of 45.58 and remains well below its 52-week high.

Calix, Inc (NYSE:CALX - Get Free Report)'s stock price fell 6.8% during trading on Tuesday. The stock traded as low as $33.48 and last traded at $33.6570. 685,382 shares changed hands during trading, a decline of 37% from the average session volume of 1,089,663 shares. The stock had previously closed at $36.13.

Key Stories Impacting Calix

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Calix reported third-quarter adjusted earnings of $0.44 per share, exceeding the consensus estimate of $0.42. Revenue rose 13.7% year over year to $301.7 million, demonstrating continued growth. Calix Q3 earnings beat estimates
• Positive Sentiment: Fourth-quarter EPS guidance of $0.41 to $0.49 is above the $0.40 analyst consensus at the midpoint, suggesting profitability may remain stronger than expected. Calix Q3 revenue rises and issues Q4 guidance
• Neutral Sentiment: Calix forecast fourth-quarter revenue of $311 million to $317 million, broadly consistent with the $314.5 million consensus estimate. Full-year 2026 revenue guidance of approximately $1.2 billion also matched expectations, limiting the potential for a major positive estimate revision. Calix third-quarter earnings results
• Negative Sentiment: Quarterly revenue of $301.7 million fell short of the $304.2 million analyst estimate, offsetting some of the EPS beat. Investors may also view the unchanged full-year revenue outlook as evidence that growth is not accelerating enough to justify Calix’s relatively high earnings multiple.
• Negative Sentiment: Calix’s net margin was only 4.61%, while the stock remains well below its 52-week high. That combination of modest profitability and weaker-than-expected revenue can make the shares vulnerable to selling even when earnings exceed forecasts. Calix Q3 2026 earnings call transcript

Analyst Ratings Changes

Several analysts recently commented on the stock. Wall Street Zen upgraded shares of Calix from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Weiss Ratings downgraded Calix from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, October 26th. Northland Securities upgraded shares of Calix from a "market perform" rating to an "outperform" rating and set a $52.00 price target for the company in a research report on Tuesday, July 21st. Zacks Research raised Calix from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 18th. Finally, Rosenblatt Securities lowered their price target on Calix from $70.00 to $55.00 and set a "buy" rating on the stock in a report on Tuesday, July 21st. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $57.40.

Calix Price Performance

The firm has a 50-day simple moving average of $36.12 and a two-hundred day simple moving average of $42.57. The company has a market cap of $2.13 billion, a PE ratio of 45.58 and a beta of 1.32.

Calix (NYSE:CALX - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The communications equipment provider reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.42 by $0.02. The business had revenue of $301.71 million for the quarter, compared to analyst estimates of $304.23 million. Calix had a return on equity of 6.17% and a net margin of 4.61%. The business's revenue for the quarter was up 13.7% compared to the same quarter last year. During the same quarter last year, the company earned $0.44 earnings per share. Equities research analysts forecast that Calix, Inc will post 0.89 EPS for the current year.

Hedge Funds Weigh In On Calix

Several large investors have recently added to or reduced their stakes in the business. Covestor Ltd raised its holdings in shares of Calix by 85.4% during the 3rd quarter. Covestor Ltd now owns 1,446 shares of the communications equipment provider's stock valued at $49,000 after buying an additional 666 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new position in Calix during the 3rd quarter worth approximately $235,000. Summit Global Investments lifted its position in Calix by 125.5% during the 3rd quarter. Summit Global Investments now owns 36,825 shares of the communications equipment provider's stock worth $1,265,000 after acquiring an additional 20,497 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in Calix by 72.8% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 75,983 shares of the communications equipment provider's stock worth $2,611,000 after acquiring an additional 32,000 shares during the period. Finally, Pinnacle Wealth Planning Services Inc. boosted its holdings in Calix by 254.0% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 878 shares of the communications equipment provider's stock worth $30,000 after acquiring an additional 630 shares during the period. 98.14% of the stock is currently owned by hedge funds and other institutional investors.

Calix Company Profile

Calix, Inc provides cloud, software and broadband access solutions to communications service providers. Its technology helps broadband operators deploy, manage and monetize high-speed internet and related services for residential and business customers.

The company's offerings include broadband access systems, subscriber premise equipment, cloud-based software and analytics, and managed services. Its portfolio supports fiber, fixed wireless and other broadband networks, while enabling providers to deliver services such as Wi-Fi management, network security, connected home applications and business connectivity.

Founded in 1999 and headquartered in San Jose, California, Calix serves broadband service providers primarily in North America, with customers and operations in other international markets.

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