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Calix Crushed Q2 Earnings; is Cloud Progress in the Cards?
Stock Analysis & Ideas

Calix Crushed Q2 Earnings; is Cloud Progress in the Cards?

The earnings season is well underway, and this week will be particularly exciting for Wall Street observers, as some of the world’s largest corporations are reporting their quarterly results. One such company is Calix, Inc. (CALX), which has proved its mettle time and again by aiding service providers through its leading cloud and software platform.

The software company reported its Q2 earnings to the tune of consensus beats on revenue, EPS, and outlook. Revenues and earnings of $168.7 million and $0.38 a share handily surpassed the consensus estimate of $161.3 million and $0.27 per share, respectively. Also, the Q3 outlook was guided above the consensus estimate. (See Calix stock charts on TipRanks) 

Reporting on the jubilation is George Notter of Jefferies, who wrote that the company has posted another strong earnings report.

The analyst thesis is predicated on Calix Cloud’s bullish outlook. He remains impressed by the expanding number of Calix Marketing Cloud customers in Q2. He added that Calix Cloud will continue to remain strong in the future, stating that “Calix Cloud will drive significant long-term upside to EPS power.”

Notter believes that the company is set to benefit from the unprecedented demand for wide-bandwidth communications services, as the shift to digitization continues, due to the pandemic.

He further cited that Calix’s vital metrics such as new customer wins, as well as revenues from both EXOS and AXOS operating platforms remained encouraging during Q2. He highlighted that the company is well-positioned to gain from accretive customer engagements of all sizes across its portfolio.

Going forward, the analyst predicts rural broadband demand to remain strong, enabling Calix, along with other rural broadband plays like Cambium (CMBM) and ADTRAN (ADTN), to benefit from it.

To this end, Notter reiterated a Buy rating on the stock and a price target of $52. This target reflects a potential 12-month upside of 17.5%.  The software company has gained around 135% over the past year.

Wall Street’s Take on CALX

On TipRanks, Calix has an analyst rating consensus of Moderate Buy, based on 4 Buy ratings and 1 Hold ratings assigned in the last three months.

As for price targets, the average CALX price target is $52.60, reflecting a potential 12-month upside of 18.8% from current levels. 

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.

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