What happened

Shares of Ubiquiti (UI -0.83%) slumped on Friday after the networking company reported its fiscal second-quarter results. The company missed analyst estimates across the board, falling short of revenue expectations by a wide margin. The stock was down 20% at 10:45 a.m. EST.

So what

Ubiquiti reported second-quarter revenue of $308.3 million, up 0.3% year over year and about $28.6 million below the average analyst estimate. Service provider technology revenue was down 13.7% to $97.7 million, while enterprise technology revenue was up 8.5% to $210.6 million.

A declining chart.

Image source: Getty Images.

Non-GAAP (adjusted) earnings per share came in at $1.40, up from $1.33 in the prior-year period and $0.06 below analyst expectations. Gross margin was up 1.5 percentage points to 47.1%, while total operating expenses were down. Excluding litigation settlement costs, operating expenses edged up 8% year over year.

During the quarter, Ubiquiti repurchased nearly 1 million of its own shares at an average price of $120.11. Those share buybacks helped boost per-share earnings.

Now what

Shares of Ubiquiti rose sharply in November, eventually carving out a 52-week high just shy of $200 per share. After Friday's rout, the stock is down about 30% from that recent peak.

With revenue growth basically disappearing in the second quarter, it's no surprise the high-flying growth stock was punished.