Canada's Vecima Networks Q4 adjusted EPS slightly beats; 2026 revenue outlook lifted
Overview
Canada broadband access provider's Q4 fiscal revenue rose 36% yr/yr to a record high
Adjusted EPS for Q4 fiscal 2026 beat analyst expectations
Company raised calendar 2026 revenue growth outlook to 27%-32% yr/yr
Outlook
Vecima raises calendar 2026 revenue growth outlook to 27%-32% from 22.5%-30%
Company expects fiscal 2027 revenue to grow 30%-35% over fiscal 2026
Vecima anticipates adjusted EBITDA margin of about 20% in calendar 2026 and fiscal 2027
Result Drivers
ENTRA DAA PRODUCTS - Record sales and increased shipments of Entra DAA products, including ERM3xx Remote-PHY modules and Entra SF-4X Optical platform, drove Q4 results
VCMTS CLOUD SOLUTION - Progress in trials and commercialization of vCMTS cloud-based DOCSIS core solution, including new Tier 1 customer agreements, contributed to Q4 performance
CONTENT DELIVERY & STORAGE - Double-digit revenue growth in Content Delivery and Storage segment, supported by managed IPTV uptake and targeted Dynamic Ad Insertion deployments
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | C$91 mln | C$79.10 mln (1 Analyst) |
Q4 Adjusted EPS | Beat | C$0.21 | C$0.20 (3 Analysts) |
Q4 EPS | C$0.22 | ||
Q4 Net Income | C$5.4 mln | ||
Q4 Adjusted EBITDA | C$18.9 mln | ||
Q4 Gross Margin | 45.4% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "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 Vecima Networks Inc is C$19.50, about 56% above its September 23 closing price of C$12.50
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Sept 23 - Cintas' Q1 revenue, adj EPS beat estimates, outlook raised
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)