Please ensure Javascript is enabled for purposes of website accessibility

Why Calix Inc. Stock Jumped Today

By Daniel Sparks - Nov 6, 2018 at 4:36PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Solid execution by the network communications software company has investors looking up.

What happened

Shares of network communications software company Calix (CALX 0.39%) skyrocketed Tuesday, rising as much as 25% and finishing the trading day up 24.6%.

The stock's rise is likely due to the company's better-than-expected earnings per share for its third quarter.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Calix reported revenue of $114.7 million -- down from $128.8 million in the year-ago quarter, but higher than the company's $111.7 million of revenue in Q2 2018 and at the high end of management's guidance range for the period.

Calix's EPS was $0.02, or $0.06 on a non-GAAP basis. On average, analysts were expecting non-GAAP EPS of $0.02. 

Notably, Calix's gross margin and operating expenses were in line with management's guidance ranges for the period. But operating cash flow was positive, even though management had guided for negative operating cash flow. In addition, net income was above the company's guidance range for the metric.

Now what

For Calix's fourth quarter, the company expects non-GAAP revenue to be between $122 million and $127 million, representing another sequential increase in its top line. Furthermore, the midpoint of management's guidance range for its non-GAAP gross margin is 47% -- ahead of Calix's non-GAAP gross margin of 46.2% in its third quarter.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Calix, Inc. Stock Quote
Calix, Inc.
$36.14 (0.39%) $0.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.