Shares of software firm Calix, Inc. (CALX) lost 1.4% during extended trade on Monday, albeit the company reported better-than-expected financial results for the third quarter ended October 2.
Headquartered in California, Calix offers cloud, software platforms, systems, and services to communications service providers.
The company reported earnings of $0.35 per share, above the Street’s estimate of $0.29 per share. (See Insiders’ Hot Stocks on TipRanks)
Driven by robust demand, total revenues grew 14% year-over-year to $172.2 million, exceeding analysts’ expectations of $167.59 million and Calix’s guidance range of $164 million to $170 million.
Systems revenue rose 15% year-over-year to $163.1 million, and Services revenue climbed 11% to $9.2 million. Meanwhile, domestic and international revenues rose 6% and 69%, respectively.
Calix said, “Performance in the quarter was led by strength in our small customers and, to a lesser extent, our medium customers with growth across our All Platform offerings more than offsetting declines in our legacy systems products.”
Calix expects its fourth-quarter revenues to range from $170 million to $176 million and earnings per share (EPS) between $0.09 and $0.14.
After the release of the third-quarter results, Jefferies (JEF) analyst George Notter reiterated a Buy rating on the stock with a price target of $74 (34% upside potential).
In a research note to investors, the analyst said, “The quarter reinforces that Calix Cloud will drive significant long-term upside to earnings power.”
Overall, the stock has a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average Calix price target of $58 implies 3.4% upside potential. Shares have gained 111.1% over the past year.
According to TipRanks’ Smart Score rating system, Calix scores a 9 out of 10, suggesting that the stock is likely to outperform market averages.
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