Clearfield (CLFD) opened fiscal Q1 2026 with revenue of US$34.3 million and a basic EPS loss of US$0.02, alongside net income from continuing operations of a US$0.3 million loss. Trailing twelve month figures show basic EPS of US$0.46 on revenue of US$154.8 million and net income of US$6.4 million. Over recent quarters the company has reported revenue in a range between US$34.3 million and US$49.9 million, with quarterly basic EPS moving between a loss of US$0.40 and a profit of US$0.12. This latest print keeps the focus squarely on how efficiently Clearfield is converting that revenue base into sustainable margins.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the widely followed growth and risk narratives around Clearfield and where those stories may need a reset.

Trailing 12 Months Now Show US$6.4 Million Profit

• Looking at the last four quarters together, Clearfield booked US$154.8 million of revenue and US$6.4 million of net income from continuing operations, which works out to basic EPS of US$0.46 even though the latest quarter itself came in at a small EPS loss of about US$0.02.
• What stands out for a bullish view is that this shift to profitability comes after earlier trailing 12 month figures in the dataset showed losses. Basic EPS moved from around a US$0.58 loss to a US$0.46 profit while revenue over those same rolling periods went from about US$125.6 million to US$154.8 million, so the story is now about how durable that profit run rate really is.

Curious how this move from loss to profit fits into the broader story investors are telling about Clearfield? 📊 Read the full Clearfield Consensus Narrative.

Premium 63x P/E Versus Industry And Peers

• The shares are trading on a trailing P/E of 63x based on that US$0.46 of trailing EPS, well above the 31x average cited for the wider US Communications industry and the 20.7x peer average. Investors are currently paying a higher multiple for each dollar of earnings than the sector benchmarks shown.
• Critics highlight that this elevated multiple sits alongside a DCF fair value figure of about US$19.02 versus the current share price of US$29.08, which in the dataset frames a gap between the cash flow model and where the stock trades. They also point out that earnings over the prior five years declined by about 30.2% per year, so the recent return to profitability is set against a weaker longer term track record.

Analyst Price Target Of US$44.25 Versus US$29.08 Today

• The analysis data shows an average analyst target of US$44.25 compared with the current share price of US$29.08, which indicates potential upside if those targets are met. That sits alongside forecasts in the dataset that point to roughly 60.8% annual earnings growth and about 15.3% annual revenue growth compared with a 10.3% market revenue figure cited.
• Supporters of the bullish case point to the combination of that return to trailing profitability, the above market revenue growth forecast and the gap between US$29.08 and the US$44.25 target. Anyone cautious is likely to come back to the same numbers and ask how those growth expectations reconcile with the history of roughly 30.2% annual earnings declines over five years and a 63x P/E that is already above the industry and peer averages.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Clearfield's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Clearfield pairs a recent return to profit with a high 63x P/E and a history of 30.2% annual earnings declines, which raises questions about valuation support.

If that mix of rich pricing and patchy earnings history gives you pause, take a focused look at 55 high quality undervalued stocks that score better on both earnings and price today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.