What happened

Shares of Ubiquiti Networks (NASDAQ:UBNT) were up 16.4% as of 3:00 p.m. EST Friday after the networking-hardware specialist announced strong fiscal second-quarter 2019 results

More specifically, Ubiquiti's revenue during the holiday quarter climbed 22.5% year over year, to $307.3 million, translating to a 75% increase in adjusted earnings per share, to $1.33. Ubiquiti doesn't provide specific quarterly top- or bottom-line guidance, so for perspective -- and while we don't usually pay close attention to Wall Street's demands -- both figures arrived comfortably above consensus estimates for earnings of $1.08 per share on revenue closer to $276 million.

Black Ubiquiti Networks router on a wooden shelf.

IMAGE SOURCE: UBIQUITI NETWORKS.

So what

Ubiquiti Networks' thriving enterprise technology segment once again led the way -- including its UniFi, mFi, and consumer-centric AmpliFi product lines -- with revenue soaring 48.2% year over year, to $194.1 million. Meanwhile, sales from its services provider technology business fell a modest 5.6%, to $113.2 million.

The company also took advantage of the new $200 million share-repurchase program it initiated in November, buying back nearly 357,000 shares for $34.7 million over the past three months.

Check out the latest earnings call transcripts for companies we cover.  

Now what

Ubiquiti reiterated its longer-term target for gross margin to remain between 45% and 50% -- it stood at 45.6% this quarter -- though the company also repeated its warning that the metric could fall to between 42% and 45% in the near term while it works to mitigate tariff headwinds.

At any rate, Ubiquiti Networks continues to expect its full fiscal-year 2019 results will arrive within its previously provided guidance for revenue of $1.1 billion to $1.2 billion and earnings per share of $4.00 to $4.80. Considering the company has now beat expectations every quarter for the past year, I suspect few investors will be surprised if its full fiscal-year results end near the top of those ranges.