Communications technology company Ubiquiti Networks Inc. (UBNT) Thursday reported a 26 percent drop in third-quarter profit, hurt by lower demand for its key airMAX platform and other systems. Results also reflect an increase in operating expenses. However, quarterly earnings topped Wall Street estimates by two cents, and revenues exceeded their forecast.
The company provided strong outlook for the fourth quarter. Investors cheered the results and shares of Ubiquiti rallied 11 percent in after-hours trade on the Nasdaq.
Ubiquiti provides communications networking products in the outdoor wireless, video surveillance, and machine-to-machine communications markets.
The San Jose, California-based company posted quarterly net income of $20.7 million or $0.23 per share, compared with $28 million or $0.30 per share last year.
Excluding items, adjusted earnings for the quarter were $21 million or $0.24 per share. On average, six analysts polled by Thomson Reuters expected earnings of $0.22 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter fell 9 percent to $83 million from $91.7 million in the prior year. Analysts had consensus revenue estimate of $80.10 million.
Total operating expenses for the quarter were higher at $12 million, compared with $7 million last year.
For the fourth quarter, Ubiquiti expects net earnings of $0.25 to $0.28 per share, adjusted earnings of $0.26 to $0.29 per share, and revenues of $90 million to $96 million. Analysts currently estimate earnings of $0.23 per share on revenues of $86.02 million.
The company's stock closed Thursday at $16.11, down 1.53%, on a volume of 331 thousand shares. In after hours, the stock gained $1.79 or 11.11%.
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