Ubiquiti (UI) Q2 revenue increase year on year, key revenue estimates

Ubiquiti Inc. UI posted strong results for the second quarter of fiscal 2021, in which the top line beat Zacks’ consensus estimate.

The New York-based network technology firm’s share price rose 8% on February 5, closing at $ 339.

Net revenue

On a GAAP basis, net income for the December quarter was $ 159.7 million, a record $ 2.54 per share, compared to $ 85.8 million or $ 1.32 per share in the quarter of l ‘last year. The improvement is mainly due to the increase in operating profit.

Non-GAAP net income was $ 159 million or $ 2.53 per share, compared to $ 91.4 million or $ 1.40 per share in the prior year quarter.

Ubiquiti Inc. Price, consensus and surprise EPS

Ubiquiti Inc. Price, consensus and surprise EPS

Ubiquiti Inc. graph-price-consensus-eps-surprise | Quote from Ubiquiti Inc.

Income

Quarterly revenue increased 55.5% year-over-year to a record $ 479.4 million, mainly due to an increase in direct sales through the company’s online stores.

Income from Service Provider Technology amounted to $ 149.9 million, up from $ 97.7 million in the last year quarter. Enterprise technology revenues were $ 329.6 million compared to $ 210.6 million. The top line topped the consensus estimate of $ 414 million.

Regionally, revenues for North America were $ 193.4 million, compared to $ 130 million in the quarter last year. Revenues for Europe, the Middle East and Africa reached $ 218.7 million, compared to $ 120.6 million. Asia-Pacific revenues were $ 37.4 million, up from $ 32.8 million a year ago, and South America revenues totaled $ 29.9 million, compared to $ 24.9 million.

Other details

Gross profit increased to $ 230.7 million, from $ 145.1 million in the last year quarter, due to higher revenue. The gross margin improved to 48.1% from 47.1%, thanks to favorable changes in the product mix. However, this was partly offset by higher shipping costs.

Total operating expenses increased to $ 39.9 million from $ 33 million in the prior year quarter. This is explained by an increase in research and development as well as selling, general and administrative expenses. Operating profit was $ 190.8 million from $ 112 million a year ago.

During the quarter, Ubiquiti repurchased 309,133 shares at an average price of $ 178.11 per share. The board approved a cash dividend of 40 cents per share. The amount is payable on February 22 to shareholders entered in the register on February 16.

Zacks ranking and actions to consider

Ubiquiti currently wears a Zacks # 3 (Hold) rank.

Some top-ranked stocks in the industry are Comtech Telecommunications CMTL, Free field CLFD and Sonim Technologies SONM, each wearing a Zacks # 2 rank (Purchase). You can see The full list of current Zacks # 1 Rank (Strong Buy) stocks here.

Comtech delivered a positive surprise of 2% on the results of the last four quarters, on average.

Clearfield has produced a positive surprise of 62.6%, on average, over the past four quarters.

Sonim delivered a positive surprise of 2.2% on the results of the last four quarters, on average.

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