Ubiquiti Networks Q4 Results Tops Estimates, Guides Q1 In Line

(RTTNews) - Network gear maker Ubiquiti Networks, Inc. (UBNT) reported Thursday a profit for the fourth quarter that surged 71 percent from last year, reflecting strong double-digit revenue growth.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings and revenue guidance for the first quarter, in line with Street view.

"We are very focused on execution which is demonstrated in another quarter of strong financial results. Several new product launches are driving revenue growth and we continue to make the strategic investments that we believe will help us not only expand our addressable market but also preserve our company's vision," CFO Craig Foster said in a statement.

The San Jose, California-based company reported net income of $49.42 million or $0.55 per share for the fourth quarter, higher than $28.84 million or $0.32 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $50.18 million or $0.56 per share, compared to $29.52 million or $0.33 per share in the year-ago quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter surged 54 percent to a record $156.01 million from $101.23 million in the same quarter last year, and topped eleven Wall Street analysts' consensus estimate of $151.03 million.

Service provider technology revenues grew 38 percent to $124.0 million, and enterprise technology revenue nearly tripled to $32.0 million from the year-ago quarter.

Average days sales outstanding or DSO in accounts receivable for the quarter was 32 days, compared to 32 days in the prior-year quarter.

Looking ahead to the first quarter, Ubiquiti Networks forecasts adjusted earnings in a range of $0.52 to $0.54 per share, on projected revenues between $156 million and $161 million. Street is currently looking for earnings of $0.52 per share for the quarter on revenues of $156.76 million.

"We continue to ramp our R&D resources in an effort to accelerate the next phase of our long-term vision of democratizing end to end communications technology infrastructure for the unconnected," Founder and CEO Robert Pera stated.

UBNT closed Thursday's regular trading session at $39.32, up $0.03 or 0.08% on a volume of 1.38 million shares. The stock gained a further $2.23 or 5.67% in after-hours trading.