Canada's Vecima Networks Q4 adjusted EPS slightly beats; 2026 revenue outlook lifted

By Reuters News


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


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.)

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