Ubiquiti (NYSE:UI) Shares Down 10.7% on Disappointing Earnings

Key Points

• Ubiquiti shares fell 10.7% after the company reported earnings that missed expectations, with the stock hitting an intraday low of $735.07.
• The company posted EPS of $3.88 versus the $4.29 consensus estimate, and revenue of $788.2 million also came in below analysts’ forecast of $814.3 million.
• Despite the earnings miss, Ubiquiti’s quarterly revenue was still up 18.7% year over year, and the company recently announced a $0.80 quarterly dividend.

Ubiquiti Inc. (NYSE:UI - Get Free Report) dropped 10.7% on Monday following a dissappointing earnings announcement. The company traded as low as $735.07 and last traded at $751.78. Approximately 43,374 shares traded hands during trading, a decline of 58% from the average daily volume of 103,644 shares. The stock had previously closed at $842.10.

The company reported $3.88 earnings per share for the quarter, missing the consensus estimate of $4.29 by ($0.41). The business had revenue of $788.20 million during the quarter, compared to analysts' expectations of $814.30 million. Ubiquiti had a return on equity of 106.03% and a net margin of 30.43%.Ubiquiti's quarterly revenue was up 18.7% compared to the same quarter last year.

Ubiquiti Dividend Announcement

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

Wall Street Analysts Forecast Growth

UI has been the topic of several research reports. BWS Financial boosted their target price on Ubiquiti from $720.00 to $980.00 and gave the company a "buy" rating in a research note on Monday, April 13th. Barclays restated an "underweight" rating and issued a $672.00 target price on shares of Ubiquiti in a research note on Monday. Wall Street Zen lowered Ubiquiti from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Weiss Ratings upgraded Ubiquiti from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 23rd. Finally, Zacks Research cut Ubiquiti from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 21st. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Ubiquiti presently has an average rating of "Hold" and an average price target of $750.67.

Hedge Funds Weigh In On Ubiquiti

Several hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its position in shares of Ubiquiti by 8.1% in the first quarter. Dimensional Fund Advisors LP now owns 2,704 shares of the company's stock valued at $2,137,000 after purchasing an additional 203 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Ubiquiti by 34.0% in the first quarter. Parallel Advisors LLC now owns 985 shares of the company's stock valued at $778,000 after purchasing an additional 250 shares in the last quarter. Vision Retirement LLC purchased a new position in shares of Ubiquiti in the first quarter valued at $25,000. Hanseatic Management Services Inc. purchased a new position in shares of Ubiquiti in the first quarter valued at $891,000. Finally, Assetmark Inc. grew its position in shares of Ubiquiti by 0.9% in the first quarter. Assetmark Inc. now owns 4,631 shares of the company's stock valued at $3,660,000 after purchasing an additional 40 shares in the last quarter. 4.00% of the stock is currently owned by hedge funds and other institutional investors.

Ubiquiti Stock Down 12.0%

The company has a 50-day moving average price of $870.91 and a two-hundred day moving average price of $703.44. The company has a market capitalization of $44.84 billion, a PE ratio of 47.62 and a beta of 1.46.

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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