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What: Shares of Ubiquiti Networks Inc. (NASDAQ: UBNT) jumped 10% Friday after the network communications platform company released stronger-than-expected fiscal fourth-quarter 2016 results.
So what:Quarterly revenue grew 27.8% year over year, to $187.5 million, primarily driven by an 89% increase in enterprise technology revenue thanks to strong global demand for Ubiquiti'sUniFi family of products. Based on generally accepted accounting principles (GAAP), that translated to net income of $57.7 million, or $0.69 per diluted share. On an adjusted basis, which excludes items like stock-based compensation, net income grew 32% year over year, to $58.2 million, or $0.69 per diluted share.
For perspective, Ubiquiti's guidance provided in May called forlower revenue between $170 million and $180 million, GAAP earnings per diluted share of $0.60 and $0.66, and adjusted diluted EPS of $0.61 to $0.67.
Now what: For the current fiscal 2017 first quarter, Ubiquiti now expects revenue between $180 million and $190 million, GAAP diluted earnings per share of $0.67 to $0.73, and adjusted earnings per share of $0.68 to $0.74. Here again -- and though we don't pay much attention to Wall Street's short-term demands -- guidance easily outpaced analysts' consensus estimates, which called for Ubiquiti to achieve fiscal Q1 revenue of $171.31 million and adjusted earnings of $0.61 per share.
In the end, this was another solid quarterly beat from Ubiquiti as its new products continue to enjoy broad-based worldwide demand, and it's no surprise to see the stock trading at a fresh 52-week high today.
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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Ubiquiti Networks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.