Shares of Harmonic (HLIT 2.17%) rose on Tuesday after the provider of video delivery technology and services reported its third-quarter results. It beat analyst estimates for both revenue and earnings, and it provided guidance that was ahead of expectations. The stock was up 16.9% at 11:50 a.m. EDT today.
Third-quarter revenue was $115.7 million, up 15% year over year and about $900,000 higher than the average analyst estimate. Revenue from software as a service (SaaS) and other services was $32.6 million, up 13.9% year over year.
Harmonic's video SaaS offering is now deployed with 36 customers, an increase of 140% year over year. CableOS is now deployed on more than 935,000 cable modems, up 20% from the second quarter.
Non-GAAP (adjusted) earnings per share came in at $0.25, up from $0.04 in the prior-year period and $0.04 better than analysts were expecting. "We delivered strong revenue growth and record earnings, powered by the growing success of our CableOS solution," said CEO Patrick Harshman in prepared remarks included in the earnings release.
On top of strong third-quarter results, Harmonic's fourth-quarter guidance was better than expected. The company sees revenue between $108 million and $118 million, entirely above the average analyst estimate of $105.8 million. Non-GAAP EPS is expected between $0.03 and $0.11, mostly above the $0.04 analysts were expecting.
With Harmonic posting double-digit revenue growth and vastly improving its bottom line, there were plenty of reasons for investors to bid up the stock.