What happened

Shares of Ubiquiti Networks (NYSE:UI) have skyrocketed today, up by 20% as of 12:30 p.m. EDT, after the company reported better-than-expected fiscal fourth-quarter results.

So what

Revenue in the fourth quarter rose 23% to $228.6 million, driven by strong enterprise technology sales from increased adoption of Ubiquiti's UniFi products. Non-GAAP net income came in at $61 million, or $0.75 per share. Analysts were only expecting $0.69 per share in adjusted profits.

Networking switch

Image source: Getty Images.

Now what

Gross margin contracted slightly to 45.1%, which Ubiquiti attributes to its strategy of aggressively pricing new products to grow market share before subsequently working on cost reductions to help profitability later. Ubiquiti finished the quarter with $604.2 million in cash and cash equivalents, of which $546.8 million was located abroad.

Looking ahead, the company's outlook calls for revenue of $230 million to $250 million in the fiscal first quarter of 2018, with GAAP earnings per share of $0.80 to $0.90. For full-year 2018, sales are expected in the range of $1 billion to $1.15 billion, with earnings per share of $3.70 to $4.30. That bottom-line forecast for next fiscal year utterly crushed the consensus estimate of $3.08 per share.

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