Ribbon Communications (NASDAQ:RBBN) Posts Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Ribbon Communications reported a quarterly loss of $0.05 per share, missing the consensus estimate of a $0.01 loss by $0.04. The company posted a 24.14% return on equity and a 3.80% net margin.
• Shares traded around $2.05, near the lower end of their 52-week range of $1.80 to $4.24. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $3.58.
• Institutional investors own approximately 70.92% of the company, with several funds recently initiating or increasing positions in Ribbon Communications.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) issued its earnings results on Tuesday. The communications equipment provider reported ($0.05) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.04), Zacks reports. Ribbon Communications had a return on equity of 24.14% and a net margin of 3.80%.

Ribbon Communications Stock Performance

NASDAQ:RBBN traded up $0.01 during mid-day trading on Tuesday, hitting $2.05. 943,623 shares of the stock were exchanged, compared to its average volume of 900,799. The firm's 50-day simple moving average is $2.51 and its 200 day simple moving average is $2.46. The stock has a market capitalization of $361.08 million, a price-to-earnings ratio of 12.06 and a beta of 1.34. Ribbon Communications has a fifty-two week low of $1.80 and a fifty-two week high of $4.24. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.09 and a current ratio of 1.37.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. B. Riley Financial reaffirmed a "neutral" rating on shares of Ribbon Communications in a report on Wednesday, April 29th. Weiss Ratings lowered shares of Ribbon Communications from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, May 11th. Finally, Wall Street Zen cut shares of Ribbon Communications from a "buy" rating to a "hold" rating in a research note on Sunday, May 3rd. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Ribbon Communications has a consensus rating of "Moderate Buy" and an average price target of $3.58.

Institutional Investors Weigh In On Ribbon Communications

A number of hedge funds and other institutional investors have recently modified their holdings of RBBN. Tower Research Capital LLC TRC grew its stake in shares of Ribbon Communications by 453.3% in the second quarter. Tower Research Capital LLC TRC now owns 10,025 shares of the communications equipment provider's stock valued at $40,000 after acquiring an additional 8,213 shares in the last quarter. Mackenzie Financial Corp bought a new position in Ribbon Communications during the fourth quarter worth about $31,000. Schonfeld Strategic Advisors LLC acquired a new stake in Ribbon Communications in the 3rd quarter worth about $41,000. Keel Point LLC acquired a new stake in Ribbon Communications in the 2nd quarter worth about $45,000. Finally, Prudential Financial Inc. bought a new stake in Ribbon Communications in the 2nd quarter valued at about $47,000. Institutional investors and hedge funds own 70.92% of the company's stock.

Ribbon Communications Company Profile

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company's offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon's technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon's product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.

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