Ubiquiti (NYSE:UI) Issues 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) issued its quarterly earnings data on Friday. The company reported $3.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $1.31, Zacks reports. The business had revenue of $759.15 million for the quarter, compared to analysts' expectations of $618.80 million. Ubiquiti had a return on equity of 217.49% and a net margin of 23.65%.During the same quarter in the prior year, the firm posted $1.74 EPS.

Ubiquiti Trading Up 30.2%

Shares of Ubiquiti stock opened at $508.5990 on Friday. The firm has a market capitalization of $30.77 billion, a PE ratio of 56.01 and a beta of 1.35. The business's 50-day moving average price is $423.25 and its 200-day moving average price is $373.02. Ubiquiti has a 12 month low of $165.50 and a 12 month high of $514.00.

Ubiquiti Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 8th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.80 per share. This is a positive change from Ubiquiti's previous quarterly dividend of $0.60. This represents a $3.20 annualized dividend and a dividend yield of 0.6%. Ubiquiti's dividend payout ratio is 26.43%.

Hedge Funds Weigh In On Ubiquiti

Institutional investors have recently modified their holdings of the company. Cetera Investment Advisers bought a new position in shares of Ubiquiti during the 2nd quarter valued at about $312,000. Legal & General Group Plc increased its position in shares of Ubiquiti by 23.2% during the 2nd quarter. Legal & General Group Plc now owns 792 shares of the company's stock valued at $326,000 after purchasing an additional 149 shares during the last quarter. Optimist Retirement Group LLC increased its position in shares of Ubiquiti by 7.9% during the 2nd quarter. Optimist Retirement Group LLC now owns 836 shares of the company's stock valued at $344,000 after purchasing an additional 61 shares during the last quarter. Canada Pension Plan Investment Board increased its position in shares of Ubiquiti by 28.6% during the 2nd quarter. Canada Pension Plan Investment Board now owns 900 shares of the company's stock valued at $370,000 after purchasing an additional 200 shares during the last quarter. Finally, Vident Advisory LLC increased its position in shares of Ubiquiti by 42.5% during the 2nd quarter. Vident Advisory LLC now owns 932 shares of the company's stock valued at $384,000 after purchasing an additional 278 shares during the last quarter. 4.00% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on UI. Barclays upped their target price on Ubiquiti from $247.00 to $299.00 and gave the stock an "underweight" rating in a research note on Friday. BWS Financial restated a "buy" rating and issued a $440.00 target price on shares of Ubiquiti in a research note on Friday, July 11th. One research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Ubiquiti currently has an average rating of "Hold" and an average target price of $369.50.

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.

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