Ubiquiti Networks Inc. shot more than 20% higher in Thursday trading after reporting earnings with a forecast that blew away projections, making Chief Executive Robert Pera more than $600 million richer. The networking company reported fiscal fourth-quarter net income of $60.7 million, or 74 cents a share, on sales of $228.6 million, up from $185.7 million a year ago. After adjustments for stock-based compensation and tax effects, the company claimed earnings of 75 cents a share, up from 69 cents in the year-ago quarter. Analysts on average expected Ubiquiti to report adjusted earnings of 74 cents a share on sales of $219 million, according to FactSet. For the 2018 fiscal year, which began July 1, Ubiquiti predicted its first year of $1 billion in revenue, forecasting earnings of $3.70 to $4.30 a share on sales of $1 billion to $1.15 billion. Analysts had been projecting annual earnings of $3.24 a share on sales of $938.7 million, according to FactSet. Ubiquiti stock moved as high as $67.80 in Thursday morning trading, crushing its previous intraday high of $64.62. Pera, the majority owner of the NBA's Memphis Grizzlies, holds more than 71% of the company's stock, according to FactSet, a stake that increased to more than $3.7 billion with Thursday's intraday gains. Ubiquiti stock had already gained 12.3% so far this year, ahead of the S&P 500 index's 10.7% gain.
Continue Reading Below
Copyright © 2017 MarketWatch, Inc.