Vistance Networks Q3 net sales fall 5.4%

Overview

• Network solutions provider's Q3 net sales fell 5.4% yr/yr, with declines in key Americas markets

• Adjusted EPS for Q3 rose yr/yr

• Company approved additional $100 mln share buyback, adding to prior authorizations

Outlook

• Company lowers full-year adjusted EBITDA guidance to $180 mln-$200 mln due to demand timing

• Company says memory chip pressures and customer deployment timing expected to impact near-term results

• Company focused on cost management and financial flexibility amid delayed customer demand

Result Drivers

• MEMORY CHIP PRESSURES AND DEPLOYMENT TIMING - Co said memory chip pricing and customer deployment timing weighed on near-term performance

• LEGACY BUSINESS DECLINE - Co attributed lower Aurora net sales to declines in its legacy business, partly offset by growth in Access Technologies

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Vistance Networks Inc is $14.50, about 125.2% above its November 4 closing price of $6.44

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 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.)