NEW YORK – Ubiquiti Inc. (NYSE:UI) shares fell sharply by 9.5% after the networking equipment maker reported fourth quarter earnings and revenue that missed analyst expectations.
The company posted adjusted earnings per share of $1.74, falling short of the $1.91 consensus estimate. Revenue came in at $507.5 million, below Wall Street’s forecast of $538.45 million.
Ubiquiti’s Q4 revenue rose 3.3% YoY to $507.5 million, driven by growth in its Enterprise Technology segment. However, the Service Provider Technology segment saw declines compared to both the prior quarter and year-ago period.
Gross margin improved to 40.2% from 35.3% in Q3, but was down from 41.4% in the year-ago quarter. The sequential increase was attributed to lower inventory charges and favorable product mix, partially offset by higher shipping costs.
“We saw continued growth in our Enterprise Technology platform this quarter, though our overall results came in below expectations,” said Robert J. Pera, Ubiquiti’s founder and CEO.
The company’s board declared a quarterly dividend of $0.60 per share, payable September 9 to shareholders of record as of September 3.
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