Ubiquiti (NYSE:UI) Announces Quarterly Earnings Results, Beats Expectations By $1.31 EPS

Key Points

• Ubiquiti's quarterly earnings exceeded expectations, reporting $3.54 EPS compared to analysts' estimates of $2.23, with revenue of $759.15 million surpassing forecasts of $618.80 million.
• The company has announced a dividend increase to $0.80 per share from the previous $0.60, reflecting a positive growth outlook and a 0.6% dividend yield.
• Institutional investors are actively adjusting their positions in Ubiquiti, with several firms increasing their holdings significantly during the recent quarter.

Ubiquiti (NYSE:UI - Get Free Report) posted its quarterly earnings results on Friday. The company reported $3.54 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $1.31, Zacks reports. Ubiquiti had a return on equity of 166.22% and a net margin of 27.66%.The business had revenue of $759.15 million for the quarter, compared to analysts' expectations of $618.80 million. During the same quarter in the prior year, the business earned $1.74 EPS.

Ubiquiti Trading Down 0.0%

UI stock traded down $0.22 during trading hours on Thursday, hitting $524.09. 181,896 shares of the stock were exchanged, compared to its average volume of 113,485. Ubiquiti has a 12 month low of $186.40 and a 12 month high of $543.99. The firm has a market capitalization of $31.70 billion, a P/E ratio of 44.42 and a beta of 1.35. The company has a 50-day simple moving average of $432.13 and a two-hundred day simple moving average of $375.34.

Ubiquiti Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 8th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 0.6%. The ex-dividend date is Tuesday, September 2nd. This is a positive change from Ubiquiti's previous quarterly dividend of $0.60. Ubiquiti's dividend payout ratio (DPR) is 20.39%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Cetera Investment Advisers bought a new position in shares of Ubiquiti in the second quarter worth $312,000. Legal & General Group Plc increased its position in shares of Ubiquiti by 23.2% in the second quarter. Legal & General Group Plc now owns 792 shares of the company's stock worth $326,000 after purchasing an additional 149 shares during the period. Optimist Retirement Group LLC increased its position in shares of Ubiquiti by 7.9% in the second quarter. Optimist Retirement Group LLC now owns 836 shares of the company's stock worth $344,000 after purchasing an additional 61 shares during the period. Canada Pension Plan Investment Board increased its position in shares of Ubiquiti by 28.6% in the second quarter. Canada Pension Plan Investment Board now owns 900 shares of the company's stock worth $370,000 after purchasing an additional 200 shares during the period. Finally, Vident Advisory LLC increased its position in shares of Ubiquiti by 42.5% in the second quarter. Vident Advisory LLC now owns 932 shares of the company's stock worth $384,000 after purchasing an additional 278 shares during the period. Institutional investors own 4.00% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Barclays increased their price target on Ubiquiti from $247.00 to $299.00 and gave the company an "underweight" rating in a research note on Friday, August 22nd. BWS Financial increased their price target on Ubiquiti from $440.00 to $600.00 and gave the company a "buy" rating in a research note on Monday. Finally, UBS Group set a $600.00 price objective on Ubiquiti in a research report on Monday. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $499.67.

Ubiquiti Company Profile

Ubiquiti Inc develops networking technology for service providers, enterprises, and consumers. The company develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products.