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.
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.
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."
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.