Ribbon Communications Q3 revenue rises sequentially on IP Optical Networks
Overview
U.S. networking solutions provider's Q3 revenue rose 14% sequentially but missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company saw strong sequential growth in IP Optical Networks and Cloud and Edge segments
Outlook
Ribbon projects Q4 2026 revenue of $233 mln to $247 mln
Company expects Q4 2026 non-GAAP gross margin of 53.5% to 54.5%
Ribbon sees Q4 2026 adjusted EBITDA between $40 mln and $47 mln
Result Drivers
IP OPTICAL NETWORKS - Co said segment revenue rose 17% QoQ, driven by new wins in North America and two new U.S. Tier 2 ISP customers
CLOUD AND EDGE SEGMENT - Co said segment revenue increased 11% QoQ, led by U.S. Tier 1 network modernization and higher sales to largest customer
COST DISCIPLINE - CFO said company maintained strong cost discipline and focused on expanding margins
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $219 mln | $221.81 mln (5 Analysts) |
Q3 Adjusted EPS | Beat | $0.07 | $0.04 (5 Analysts) |
Q3 Loss Per Share | $0.05 | ||
Q3 Adjusted Net Income | Beat | $12 mln | $6.63 mln (5 Analysts) |
Q3 Net Loss | $9 mln | ||
Q3 Adjusted EBITDA | Miss | $26.77 mln | $28.69 mln (4 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 Ribbon Communications Inc. is $3.30, about 146.3% above its October 26 closing price of $1.34
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago
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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.)