Israel's Ceragon Q3 revenue rises 11.7%, beats estimates
Overview
Israel wireless connectivity firm's preliminary Q3 revenue rose 11.7% yr/yr, beating analyst expectations
Q3 operating income missed analyst expectations
Revenue growth driven by India demand and North America rebound; gross margin improved on revenue mix
Outlook
Ceragon sees 2026 revenue between $365 mln and $375 mln
Company expects 2026 non-GAAP gross margin of 33.5% to 34.5% at midpoint of revenue guidance
Ceragon expects 2026 non-GAAP operating margin of 5% to 6% at midpoint of revenue guidance
Result Drivers
INDIA DEMAND - Co said revenue growth was driven by solid demand from major operators in India amid ongoing network modernization investments
NORTH AMERICA REBOUND - Co said North America saw a strong sequential rebound in revenue, helped by Tier 1 carrier demand and higher software mix
REVENUE MIX - Co said improved revenue mix drove a 430 basis point improvement in gross margin sequentially
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $95.52 mln | $94.40 mln (6 Analysts) |
Q3 EPS | $0.03 | ||
Q3 Net Income | $2.38 mln | ||
Q3 Operating Income | Miss | $4.48 mln | $5.73 mln (6 Analysts) |
Q3 Basic EPS | $0.03 | ||
Q3 Pretax Profit | $3.09 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 Ceragon Networks Ltd is $4.25, about 112.5% above its November 4 closing price of $2.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)