Ubiquiti Networks Q2 Results Beat View, Issues Upbeat Q3 Outlook

(RTTNews) - Network gear maker Ubiquiti Networks, Inc. (UBNT) on Thursday reported a profit for the second quarter that more than doubled from last year, boosted by strong revenue growth.

Both revenue and adjusted earnings per share for the quarter beat analysts' expectations. Looking ahead, the company forecast financial results for the third quarter above Street estimates. Shares of the company gained almost 9 percent in extended trades.

The San Jose, California-based company's net income for the second quarter was $41.79 million or $0.47 per share, up from $17.80 million or $0.20 per share in the previous-year quarter.

Adjusted earnings per share for the quarter were $0.48, compared to $0.20 in the year-ago period. On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter surged 85 percent to $138.44 million from $74.90 million in the prior-year quarter. Analysts had a consensus revenue estimate of $133.33 million for the quarter.

Service provider revenues for the quarter rose 63 percent from last year to $111.4 million, wile enterprise revenue quadrupled to $27 million.

Average days sales outstanding or DSOs for the quarter declined slightly to 24 days, the lowest in the company's history.

Looking ahead to the third quarter, Ubiquiti Networks forecasts reported earnings of $0.46 to $0.50 per share, adjusted earnings of $0.47 to $0.51 per share, and revenues of $138 million to $144 million. Street expects the company to earn $0.46 per share for the quarter on revenues of $137.52 million.

UBNT closed Thursday's regular trading session at $40.94, up $1.93 or 4.95 percent on a volume of 2.03 million shares. In after-hours, the stock further gained $3.56 or 8.70 percent to $44.50.