Ubiquiti Networks Inc (UBNT) Shares Jump Up 20% on Fourth Quarter Earnings Beat

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Ubiquiti Networks Inc (NASDAQ:UBNT) shares are trading up over 20% in the pre-market this morning after the company reported better than expected fourth quarter earnings late Thursday. While analysts had been expecting around $0.49 per share, the company reported an astounding $0.57 per share on $161.9 million in revenue. Analysts were only expected to see revenue $155 million in revenue.

“UniFi has huge growth ahead of it with solid growth was purely on the execution, the development execution,” explained CEO Robert J. Pera. “So if you look when we launched UniFi in 2011-2012 when it starts shipping at volume. There is nothing like it was high end managed Wi-Fi platform that was just a fraction of the cost of the guys like Cisco out there. And in the past couple of years you’ve seen the growth kind of tail out because we mis-executed on a number of front. We mis-executed on our AC strategy for the large part we mis-executed on our switches and gateways along with general wireless stability and a lot of advanced controller features.”

The stock decreased 0.57% or $0.16 during the last trading session, hitting $28.07. Approximately shares traded hands. UBNT shares have declined 13.39% since July 1, 2015 and are currently downtrending. It has underperformed the S&P500 by 6.09%.

From a total of 7 analysts covering Ubiquiti Networks Inc (NASDAQ:UBNT) stock, 0 rate it a “Buy”, 4 a “Sell”, and 3 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $36 while the lowest target price is $14. The mean of all analyst targets is $26.25 which is -6.48% below today’s ($28.07) stock price. Ubiquiti Networks Inc was the topic of 12 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Bernstein downgraded shares on January 14 to a “Mkt Perform” rating. Wunderlich downgraded shares to a”Hold” rating and a $36 target share price in their report from an August 7. JMP Securities downgraded UBNT stock in a recent report from October 19 to a “Mkt Underperform” rating. Finally, Zacks downgraded the stock to a “Buy” rating in a report they issued on an August 13.

The institutional sentiment decreased to 0.66 in Q2 2015. It’s down 0.17, from 0.83 in 2015Q2. The ratio is negative, as 32 funds sold all their Ubiquiti Networks Inc shares they owned while 47 reduced their positions. 16 funds bought stakes while 36 increased their total positions. Institutions now own 29.61 million shares which is 1.35% less than the previous share count of 30.01 million in 2015Q2.

Karamaan Group Llc holds 7.73% of its total portfolio in Ubiquiti Networks Inc, equating to 219,601 shares. Makaira Partners Llc owns 1.13 million shares representing 6.25% of their total US portfolio. Moreover, Taube Hodson Stonex Partners Llp has 3.26% of their total portfolio invested in the company, equating to 841,753 shares. The Ontario – Canada-based Edgepoint Investment Group Inc. has a total of 2.99% of their portfolio invested in the stock. Provident Investment Management Inc., a Michigan-based fund reported 413,010 shares owned.

Ubiquiti Networks, Inc., develops high performance networking technology for service providers and enterprises. The company has a market cap of $2.39 billion. The Company’s technology platforms for service providers enable carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing. It has 17.18 P/E ratio. The Company’s technology platforms for enterprises enable wireless local area network infrastructure, video surveillance products, and machine-to-machine communications.

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