Shares of Ubiquiti Networks Inc. (NYSE:UI) were up 13.6% as of 3:30 p.m. EDT Thursday after the wireless networking products specialist announced better-than-expected fiscal third-quarter 2018 results.
Quarterly revenue climbed 14.7% year over year to $250.4 million and translated to adjusted net income of $76 million, or $0.98 per diluted share. By comparison, Ubiquiti's guidance -- provided last quarter -- called for adjusted earnings per share of $0.92 to $0.99, and revenue between $245 million and $260 million. And analysts, on average, were only looking for earnings of $0.93 per share on revenue of $247.9 million.
Ubiquiti bolstered its per-share earnings by repurchasing nearly 4.4 million shares of common stock through May 7, 2018 at an average price of $66.53 per share. Earlier today, the company followed by initiating a new $200 million stock repurchase program.
Within its top line, Ubiquiti Networks' growth was composed of a 31.6% increase in Enterprise Technology revenue, to $149.5 million, partially offset by a 3.6% decline in Service Provider Technology revenue, to $100.9 million.
Looking to the full fiscal year, Ubiquiti reiterated last quarter's assertion that it's on track to meet the low end of its previous guidance ranges. As a reminder, that guidance was initially provided with Ubiquiti's fiscal fourth-quarter 2017 report last August, and called for revenue of $1.0 billion to $1.15 billion, with earnings per share of $3.70 to $4.30. Here again, that compares favorably to Wall Street's latest expectations for full fiscal-year earnings of $3.61 per share on revenue of $1.01 billion.
In the end, this was a relatively straightforward quarterly beat from Ubiquiti Networks. With shares still yet to fully recover from two big drops in February -- the first following its mixed quarterly report, and the second after the company disclosed it was cooperating with vague subpoenas from the SEC "relating to a range of topics" -- it's no surprise to see the stock rebounding today.