Ubiquiti Q1 revenue, profit jump; warns of margin pressure
Overview
Enterprise networking firm's fiscal Q1 revenue rose 39.9% yr/yr to $1.03 bln
Adjusted EPS for fiscal Q1 climbed 53.8% yr/yr to $5.32
Gross margin improved to 47.3%, helped by lower indirect costs but offset by higher component costs
Outlook
Company warns component costs may continue to rise, pressuring near-term gross margins
Ongoing supply constraints could limit ability to meet demand and impact revenue and margins
Result Drivers
ENTERPRISE AND SERVICE PROVIDER GROWTH - Co said revenue growth was driven by increases in both Enterprise Technology and Service Provider Technology platforms
LOWER INDIRECT COSTS - Co said gross margin improvement was primarily due to lower indirect costs, partly offset by higher component costs
HIGHER INTEREST INCOME - Co said higher interest income on invested cash contributed to increased net income
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $1.03 bln | $977.45 mln (1 Analyst) |
Q1 Adjusted EPS | Beat | $5.32 | $4.57 (2 Analysts) |
Q1 EPS | $5.29 | ||
Q1 Adjusted Net Income | Beat | $322 mln | $295.55 mln (1 Analyst) |
Q1 Gross Margin | 47.30% |
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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.)