Veteran networking products specialist Ubiquiti (UI 0.44%) took a big hit to its share price on Friday. The company divulged its latest quarterly performance metrics, and the market reacted to this by trading the stock down by nearly 15%. And that was on a generally positive day for stocks, with the S&P 500 index edging up by almost 1%.
Ubiquiti missed badly with its first quarter of fiscal 2024
For its first quarter of fiscal 2024, Ubiquiti's revenue totaled slightly over $463 million. This was down from the more than $498 million in the same period a year ago. Adjusted net income also declined, slipping to $88.9 million ($1.47 per share) from the first quarter 2023 profit of $94 million.
Both headline numbers missed analyst estimates by a mile. Collectively, prognosticators tracking Ubiquiti stock were anticipating the company would post revenue of over $546 million, and net an adjusted profit of $2.17 per share.
The company attributed the revenue erosion to a decrease in the take from its enterprise technology platform. In terms of its geographies, it experienced a 14% decline year over year in the Europe, Middle East, and Africa (EMEA) region and a 20% drop in the Asia-Pacific region.
Maintaining the dividend policy
On a brighter note, Ubiquiti maintained its quarterly dividend. It declared a $0.60 per share payout, matching the previous nine distributions. The company began paying its shareholders quarterly near the end of 2018, and has raised that amount three times.
The upcoming dividend is to be dispensed on Nov. 20 to investors of record as of the close of business on Nov. 13. At the current share price, its yield is 2.2%.
