Network Equipment Provider Ubiquiti Posts Mixed Q4 Results, Plans Regular Dividend Payout
Portfolio Pulse from Lekha Gupta
Ubiquiti Inc (NYSE:UI) reported Q4 FY23 revenue growth of 10.8% Y/Y to $491.1 million, beating consensus estimates. The growth was led by the Enterprise Technology platform, offset by lower Service Provider Technology platform revenue. Gross profit rose to $203.3 million, with margin expanding to 41.4%. Adjusted EPS of $1.73 missed the consensus of $1.80. The company declared a dividend per share of $0.60 and intends to pay regular quarterly cash dividends of at least $0.60 per share during each quarter of FY24. UI shares are trading lower by 2.58% at $150.00 premarket.
August 25, 2023 | 2:22 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Ubiquiti's Q4 FY23 results were mixed with revenue beating estimates but EPS missing. The company declared a dividend per share of $0.60 and plans to pay regular quarterly dividends in FY24. UI shares are trading lower premarket.
Ubiquiti's revenue beat estimates, indicating strong business performance. However, the EPS miss suggests profitability concerns, which could be why the stock is trading lower. The declaration of regular dividends could be a positive signal to investors, indicating the company's confidence in its cash flow. However, the overall impact appears negative in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100