What happened

Shares of Ubiquiti (NYSE:UI) have popped today, up by 16% as of noon EDT, after the company reported fiscal third-quarter earnings. The networking tech company crushed expectations for both the top and bottom lines.

So what

Revenue in the fiscal third quarter jumped 18% to $337.4 million, well above the consensus estimate of $310.3 million. That all led to adjusted earnings per share of $1.61, while analysts were expecting just $1.35 per share in adjusted profit. Gross margin expanded to 47.3%, which Ubiquiti attributed to favorable shifts in product mix and decreased inventory reserves.

Ubiquiti logo

Image source: Ubiquiti.

The coronavirus outbreak did not have "any material impact" on Ubiquiti's performance during the quarter but is affecting the company's supply chain.

"However, we have experienced a major disruption in our supply chain as a result of the COVID-19 pandemic due to related restrictions that have significantly impacted our suppliers' ability to manufacture or provide key components or services," Ubiquiti said in a release. "Accordingly, the effects, if any, of the COVID-19 pandemic may not be fully reflected in the Company's financial results until future periods."

Now what

Ubiquiti repurchased over $148 million in stock during the quarter, in addition to another $13.7 million after the quarter closed. That left approximately $38 million remaining under a previous $200 million authorization from late last year, so Ubiquiti's board has authorized a new $500 million buyback program.

The company declared a quarterly dividend of $0.30 per share payable to shareholders of record as of May 18.