NEW YORK - Ubiquiti Inc. (NYSE:UI) reported lower-than-expected earnings for its third quarter, with a non-GAAP diluted EPS of $1.28, which was $0.39 short of the analyst consensus of $1.67.
Despite this earnings miss, the company's revenue slightly exceeded expectations, coming in at $493 million compared to the consensus estimate of $492.29 million. Following the announcement, shares of Ubiquiti were up 0.98%.
The company's revenue represented a 7.7% increase compared to the $457.8 million reported in the same quarter last year. This growth was primarily driven by a rise in revenue from the Enterprise Technology platform, which offset a decline in the Service Provider Technology platform's revenue. However, the company's gross profit margin saw a decline, dropping to 35.3% from 41.2% YoY, attributed to higher inventory charges, unfavorable product mixes, and increased shipping costs.
Ubiquiti's GAAP net income for the quarter was $76.3 million, a 22.6% decrease from the $98.6 million reported in the previous year. This decline in profitability was mainly due to the lower gross profit, increased operating expenses, and higher interest expense. The company also saw a decrease in GAAP and non-GAAP earnings per diluted share of 22.7% and 22.4%, respectively, from the same period last year.
In addition to the financial results, Ubiquiti's Board of Directors declared a $0.60 per share cash dividend payable on May 28, 2024, to shareholders of record as of May 20, 2024. This move reflects the company's commitment to returning value to its shareholders despite the challenging quarter.
Ubiquiti's CEO Robert J. Pera commented on the results, stating, "Our team remains focused on driving growth and efficiency across our platforms, even as we navigate a dynamic global market environment." This statement underscores the company's strategic approach to overcoming the current challenges it faces.
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