Ribbon Communications (NASDAQ:RBBN) Posts Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Ribbon Communications (NASDAQ:RBBN) posted its quarterly earnings data on Tuesday. The communications equipment provider reported ($0.05) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.04), Zacks reports. Ribbon Communications had a net margin of 3.80% and a return on equity of 24.14%.

Here are the key takeaways from Ribbon Communications’ conference call:

• Second-quarter results exceeded expectations: Revenue rose 18% sequentially to $192 million and adjusted EBITDA improved by $20 million to $12 million, with both operating segments contributing to the improvement.
• IP Optical momentum was strong. Product and service bookings reached an all-time high with a 1.6x book-to-bill ratio, while backlog increased more than 60% year to date; data-center interconnect, critical infrastructure, and defense projects were key drivers.
• Ribbon highlighted strategic growth opportunities in enterprise communications and AI, including major Fortune 50 customer wins and a partnership integrating Ribbon’s carrier-grade voice capabilities into Salesforce’s Agentforce Contact Center.
• The company moderated its second-half growth expectations because U.S. Tier 1 voice-modernization deployments, particularly at Verizon, are progressing more slowly than anticipated. Full-year revenue guidance is now $810 million-$840 million, below the initial outlook.
• Higher component and logistics costs are expected to add approximately $2 million per quarter in the second half, while supply constraints may persist; full-year gross-margin guidance was reduced to 51%-52%.

Ribbon Communications Stock Up 0.5%

Shares of RBBN traded up $0.01 on Tuesday, hitting $2.05. 947,701 shares of the stock traded hands, compared to its average volume of 900,821. The company has a market capitalization of $361.08 million, a PE ratio of 12.06 and a beta of 1.34. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.09 and a current ratio of 1.37. The business has a 50 day simple moving average of $2.51 and a 200 day simple moving average of $2.46. Ribbon Communications has a one year low of $1.80 and a one year high of $4.24.

Hedge Funds Weigh In On Ribbon Communications

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC boosted its stake in Ribbon Communications by 453.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 10,025 shares of the communications equipment provider’s stock valued at $40,000 after purchasing an additional 8,213 shares during the last quarter. Mackenzie Financial Corp bought a new stake in shares of Ribbon Communications in the 4th quarter worth $31,000. Schonfeld Strategic Advisors LLC purchased a new position in shares of Ribbon Communications in the third quarter worth $41,000. Keel Point LLC purchased a new position in shares of Ribbon Communications in the second quarter worth $45,000. Finally, Prudential Financial Inc. bought a new position in shares of Ribbon Communications during the second quarter valued at $47,000. 70.92% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

RBBN has been the topic of a number of recent research reports. B. Riley Financial reissued a “neutral” rating on shares of Ribbon Communications in a research note on Wednesday, April 29th. Weiss Ratings downgraded Ribbon Communications from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Finally, Wall Street Zen lowered Ribbon Communications from a “buy” rating to a “hold” rating in a research report on Sunday, May 3rd. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $3.58.

About Ribbon Communications

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company’s offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon’s technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon’s product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.