Why Is Network Equipment Provider Ubiquiti Stock Diving Premarket Friday?
Portfolio Pulse from Lekha Gupta
Ubiquiti Inc. (NYSE:UI) shares are down premarket after reporting Q4 results. Revenue grew 3.3% Y/Y to $507.5M, missing expectations. Gross margin fell due to higher shipping and inventory costs. Adjusted EPS beat estimates. A $0.60 dividend was declared.
August 23, 2024 | 12:46 pm
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Ubiquiti's Q4 revenue missed expectations, leading to a premarket stock drop. Gross margin decreased due to higher costs, but EPS slightly beat estimates. A $0.60 dividend was declared.
Ubiquiti's revenue miss and decreased gross margin are negative indicators, causing a premarket stock drop. Despite a slight EPS beat and dividend declaration, the negative aspects are likely driving the short-term price down.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100