Ubiquiti (NYSE:UI) Posts Earnings Results, Misses Estimates By $0.41 EPS

Key Points

• Ubiquiti missed earnings expectations, reporting $3.88 EPS versus analysts’ estimate of $4.29, while revenue came in at $788.2 million, below the $814.3 million consensus.
• Despite the miss, revenue still grew 18.7% year over year, and the company posted a net margin of 29.9% and return on equity of 113.21%.
• Shares fell 9.1% after the results, trading around $842.26, even as Ubiquiti announced a quarterly dividend of $0.80 per share.

Ubiquiti (NYSE:UI - Get Free Report) announced its earnings results on Friday. The company reported $3.88 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.29 by ($0.41), FiscalAI reports. Ubiquiti had a net margin of 29.90% and a return on equity of 113.21%. The business had revenue of $788.20 million for the quarter, compared to analysts' expectations of $814.30 million. The company's revenue for the quarter was up 18.7% on a year-over-year basis.

Ubiquiti Trading Down 9.1%

UI stock traded down $84.44 during midday trading on Friday, reaching $842.26. The stock had a trading volume of 255,913 shares, compared to its average volume of 106,668. The company's fifty day simple moving average is $870.91 and its 200 day simple moving average is $703.44. The company has a market cap of $50.97 billion, a price-to-earnings ratio of 57.37 and a beta of 1.46. Ubiquiti has a 52-week low of $362.29 and a 52-week high of $1,099.99.

Ubiquiti Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Shareholders of record on Monday, May 18th will be issued a $0.80 dividend. The ex-dividend date is Monday, May 18th. This represents a $3.20 dividend on an annualized basis and a yield of 0.4%. Ubiquiti's dividend payout ratio (DPR) is presently 21.80%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on UI shares. Weiss Ratings upgraded Ubiquiti from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 23rd. Wall Street Zen lowered Ubiquiti from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Zacks Research lowered Ubiquiti from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 21st. Barclays raised their price objective on Ubiquiti from $455.00 to $527.00 and gave the company an "underweight" rating in a report on Friday, February 6th. Finally, BWS Financial raised their price objective on Ubiquiti from $720.00 to $980.00 and gave the company a "buy" rating in a report on Monday, April 13th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Ubiquiti presently has an average rating of "Hold" and an average price target of $702.33.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in UI. Quarry LP acquired a new stake in shares of Ubiquiti in the 3rd quarter worth $34,000. CIBC Private Wealth Group LLC increased its stake in shares of Ubiquiti by 238.1% in the 4th quarter. CIBC Private Wealth Group LLC now owns 71 shares of the company's stock worth $39,000 after acquiring an additional 50 shares during the last quarter. CANADA LIFE ASSURANCE Co increased its stake in shares of Ubiquiti by 216.0% in the 4th quarter. CANADA LIFE ASSURANCE Co now owns 79 shares of the company's stock worth $44,000 after acquiring an additional 54 shares during the last quarter. Greenline Wealth Management LLC acquired a new stake in shares of Ubiquiti in the 4th quarter worth $45,000. Finally, Steward Partners Investment Advisory LLC increased its stake in shares of Ubiquiti by 36.1% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 83 shares of the company's stock worth $46,000 after acquiring an additional 22 shares during the last quarter. Hedge funds and other institutional investors own 4.00% of the company's stock.

About Ubiquiti

Ubiquiti Inc NYSE: UI is a U.S.-based technology company that designs and sells networking and wireless communication products for enterprise, service provider and consumer markets. Its product portfolio includes Wi‑Fi access points, routers and gateways, managed Ethernet switches, network management software, and IP surveillance systems. Ubiquiti's offerings are organized under several well‑known lines—most notably UniFi for managed LAN/Wi‑Fi and networked video, AmpliFi for consumer Wi‑Fi, and product families targeting service‑provider and point‑to‑point wireless broadband applications.

The company emphasizes integrated hardware and software solutions, with centralized management and cloud‑enabled control as core features of its platform approach.

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