NEW YORK (TheStreet) -- Ubiquiti Networks (UBNT) stock is sinking in post-market trading despite beating earnings estimates and issuing above-consensus guidance. After the bell, shares dropped 8.2% to $38.
The communications company earned 50 cents a share over the three months to March, a penny higher than analysts surveyed by Thomson Reuters expected. Revenue of $148.3 million rose 78.2% year over year and exceeded estimates by $6.4 million.
For its fourth quarter, Ubiquiti anticipates revenue between $147 million and $153 million and earnings of 48 cents to 52 cents a share. Analysts expected $150.45 million and 50 cents a share.
TheStreet Ratings team rates UBIQUITI NETWORKS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UBIQUITI NETWORKS INC (UBNT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
- You can view the full analysis from the report here: UBNT Ratings Report