Overview

• Networking technology provider's fiscal Q3 revenue grew yr/yr, driven by enterprise platform

• Adjusted EPS for fiscal Q3 rose yr/yr

• Company declared $0.80 per share cash dividend for shareholders

Outlook

• Company did not provide specific guidance or outlook for future quarters or the full year in press release

Result Drivers

• ENTERPRISE PLATFORM GROWTH - Revenue increase from prior year was primarily driven by growth in the Enterprise Technology platform

• POST-HOLIDAY SALES NORMALIZATION - Sequential revenue decline was due to lower sales following strong holiday webstore sales in Q2

• GROSS MARGIN IMPROVEMENT - Gross margin rose due to favorable product mix, reduced inventory charges, and lower shipping and indirect costs, partly offset by higher tariff costs

Company press release: ID:nBw3SqSmNa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Miss	$788.20 mln	$814.30 mln (1 Analyst)
Q3 Adjusted EPS	Miss	$3.88	$4.29 (1 Analyst)
Q3 EPS		$3.86
Q3 Adjusted Net Income		$235.10 mln
Q3 Gross Margin		47.00%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy."

• Wall Street's median 12-month price target for Ubiquiti Inc is $753.50, about 18.7% below its May 7 closing price of $926.69

• The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 44 three months ago

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