Shares of wireless backhaul solutions provider Ceragon Networks (NASDAQ:CRNT) jumped on Monday, rising as much as 16.2%. The stock's gain followed Ceragon's third-quarter earnings release.
Shares are likely trading higher because the company reported better-than-expected revenue and earnings per share.
Ceragon reported third-quarter revenue of $86.5 million, up 13.9% year over year and ahead of a consensus analyst estimate for revenue of $82.3 million. Earnings per share for the period was $0.09, up from $0.04 in the year-ago quarter. Non-GAAP earnings per share was $0.07, up from $0.05 in the year-ago quarter and above an average analyst forecast for $0.04.
Cash flow provided by operating activities was $15.5 million, up significantly from negative $9.5 million in the year-ago quarter.
"We are achieving our goal of growing net income and delivering strong cash flow, even as we continue to invest aggressively in our next generation 5G solutions," said Ceragon CEO Ira Palti in the company's third-quarter earnings release.
Looking ahead, Palti said the company is "on track to attain an increase in non-GAAP net income in 2018 compared to 2017." In 2019, Ceragon expects to increase its non-GAAP net income even more.