Sell: Ubiquiti (UBNT)
Updated from Investment Digest 759, July 23, 2014
from BI Research
Ubiquiti (UBNT) is an R&D-focused, wireless networking company. For fiscal Q2 adjusted EPS weighed in at $.47 as compared to $.50 last year, which at least was right at the consensus. Revenues were $147.5 million only equal with last year’s as preannounced. Not a very strong quarter.
The West Coast port strike hurt revenues into the U.S. by $8 million. But that’s over and guidance for the Q3 nonetheless calls for a twin of fiscal Q2, except only $.42 - $.43 of EPS. Worse, the consensus for FY6/16 shows growth of just 5% from $1.94 to $2.03. And that’s after $2.00 in FY6/14 as well! Earnings are seriously stuck. This is not what we signed up for. Sell.
Tom Bishop, BI Research, www.biresearch.com, May 20, 2015