Ribbon Comms RBBN is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Ribbon Comms to report an earnings per share (EPS) of $0.06.
The announcement from Ribbon Comms is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
During the last quarter, the company reported an EPS missed by $0.00, leading to a 17.22% drop in the share price on the subsequent day.
Here's a look at Ribbon Comms's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.05 | 0 | 0.13 | 0.07 |
| EPS Actual | 0.05 | -0.01 | 0.12 | 0.05 |
| Price Change % | -17.0% | -0.0% | 7.000000000000001% | 3.0% |
Tracking Ribbon Comms's Stock Performance
Shares of Ribbon Comms were trading at $3.4 as of October 21. Over the last 52-week period, shares are up 78.68%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Ribbon Comms
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Ribbon Comms.
The consensus rating for Ribbon Comms is Buy, derived from 2 analyst ratings. An average one-year price target of $5.0 implies a potential 47.06% upside.
Analyzing Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of Clearfield, Adtran Holdings and Applied Optoelectronics, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- For Clearfield, analysts project an Buy trajectory, with an average 1-year price target of $47.5, indicating a potential 1297.06% upside.
- The consensus among analysts is an Buy trajectory for Adtran Holdings, with an average 1-year price target of $7.0, indicating a potential 105.88% upside.
- For Applied Optoelectronics, analysts project an Buy trajectory, with an average 1-year price target of $16.2, indicating a potential 376.47% upside.
Snapshot: Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Clearfield, Adtran Holdings and Applied Optoelectronics, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Ribbon Comms | Buy | -8.55% | $97.87M | -4.05% |
| Clearfield | Buy | -20.38% | $10.69M | -0.16% |
| Adtran Holdings | Buy | -30.97% | $81.58M | -20.52% |
| Applied Optoelectronics | Buy | 3.98% | $9.56M | -13.66% |
Key Takeaway:
Ribbon Comms ranks at the bottom for Revenue Growth and Gross Profit, indicating lower performance in these areas compared to its peers. However, it ranks in the middle for Return on Equity, suggesting a moderate level of profitability relative to others.
All You Need to Know About Ribbon Comms
Ribbon Communications Inc provides network solutions to service providers and enterprises. It enables service providers and enterprises to modernize their communications networks and provide secure real-time communications solutions to their customers and employees. It has two separate lines of business; the Cloud and Edge segment, and the IP Optical Networks segment. The majority of the revenue for the company is generated from its Cloud and Edge segment that provides secure and reliable software and hardware products, solutions, and services for VoIP communications, Voice Over LTE among others to service providers and enterprise customers. The company generates majority of its revenue from United States.
Understanding the Numbers: Ribbon Comms's Finances
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Challenges: Ribbon Comms's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -8.55%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -8.73%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Ribbon Comms's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -4.05%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Ribbon Comms's ROA stands out, surpassing industry averages. With an impressive ROA of -1.54%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Ribbon Comms's debt-to-equity ratio is below the industry average. With a ratio of 0.95, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.