Shares of Ubiquiti Networks Inc. climbed Friday after the wireless networking company's fiscal third-quarter results and a fourth-quarter forecast came in ahead of what analysts expected.
THE SPARK: On Thursday the company reported that it earned $20.7 million, or 23 cents per share, compared with $27.9 million, or 30 cents per share, on the same quarter last year. It made 24 cents per share, excluding one-time items.
Revenue fell to 9 percent $83.2 million.
Analysts polled by FactSet estimated earnings at 22 cents per share on revenue of $80.3 million.
Ubiquiti forecast adjusted earnings between 26 and 29 cents per share for its fiscal fourth quarter on revenue of $90 million to $96 million. Analysts expected 23 cents per share on revenue of $86.2 million.
THE BIG PICTURE: Ubiquiti, based in San Jose, Calif., provides wireless networking products and services in rural areas. Its products and solutions are sold through a network of distributors, resellers, and original equipment manufacturers.
THE ANALYSIS: Wunderlich Securities analyst Matthew S. Robison said the company delivered a strong performance, helped by margin gains. He said demand for some services is improving and some past issues with distributors appear to be resolved. The analyst increased his earnings forecast, raised his price target to $23 from $20 and kept a "Buy" rating on the company.
SHARE ACTION: Up $3.01, or 18.7 percent, to $19.12 in afternoon trading. The stock has traded in a 52-week range of $7.80 to $24.92.