The market will get to hear the latest from Motley Fool Hidden Gems recommendation and wireless network solutions provider Ceragon Networks
What analysts say:
- Buy, sell, or waffle? Of 12 analysts rating Ceragon, 10 say buy and two give it a hold rating. The company holds a top-notch five-star stock rating in the Motley Fool CAPS community, with more than 1,420 opinions given.
- Revenue. On average, analysts predict quarterly sales to rise 36% over the same quarter last year, to $46.2 million.
- Earnings. Profits are expected to grow even faster, to $0.13 per share.
What management says:
With a stock that's been trending downward over the past several months, many investors -- including this Fool -- have been wondering what's going on at Ceragon. But as we often emphasize here at the Fool, the stock doesn't tell you anything fundamentally about a company, which is why you shouldn't base decisions on stock movement.
Little has changed in outlook for the company as service providers such as Verizon Wireless -- a joint venture of Verizon Communications
What management does:
In the recent quarter, margins remained strong as the company kept a lean structure.
9/06 |
12/06 |
3/07 |
6/07 |
9/07 |
12/07 |
|
---|---|---|---|---|---|---|
Gross |
34.9% |
25.5% |
26.5% |
27.4% |
29.1% |
36.1% |
Operating |
2.3% |
(6.2%) |
(3.5%) |
(1.5%) |
0.2% |
7.7% |
Net |
(4.0%) |
(5.0%) |
(2.6%) |
(1.1%) |
0.4% |
8.1% |
One Fool says:
Ceragon's growth potential is strongly tied to the broadband upgrade cycle that has telecom operators around the world boosting capacity in their networks. Uncertainty about the pace of Clearwire
But network expansion concerns are near-term in nature -- adding broadband capacity to wireless networks around the world is just a matter of when. So the long-term possibilities with Ceragon are still there if the company can position itself to capture a good portion of this business, as it has done in the past.
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