Fatpipe Inc/UT (NASDAQ:FATN) Announces Earnings Results, Beats Expectations By $0.02 EPS

Fatpipe Inc/UT (NASDAQ:FATN) released its quarterly earnings results on Thursday. The company reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of $0.07 by $0.02, FiscalAI reports. Fatpipe Inc/UT had a return on equity of 29.83% and a net margin of 26.87%.The business had revenue of $5.03 million during the quarter.

Here are the key takeaways from Fatpipe Inc/UT’s conference call:

• Sales increased approximately 27%, while income rose about 65% year over year; EPS improved to $0.09 from $0.05. Management said gross margins remain around 92%–93% despite larger deals.
• FatPipe reported expanding deal sizes and momentum through its partner-led model, including TD SYNNEX, and said approximately 30%–35% of a recently announced $7 million education order may be recognized in the current quarter.
• The company is winning customers from VeloCloud, Juniper, and other incumbent vendors, citing responsive support, competitive pricing, and product performance as differentiators. Management said the VeloCloud replacement pipeline remains active.
• Management increased investment in growth, including roughly $400,000 in marketing during the quarter and additional inventory purchases to support large orders; executives acknowledged that margins may decline somewhat as the company scales.
• FatPipe said its Total Security 360 cybersecurity product is fully tested and entering customer deployments, while SATBOOST is gaining interest across public- and private-sector applications, including satellite and 5G connectivity. The company also plans to expand its sales team from roughly 30–31 people toward 36–38 by fiscal year-end.

Fatpipe Inc/UT Trading Up 18.8%

Shares of FATN stock traded up $0.96 during trading hours on Friday, hitting $6.08. 360,139 shares of the company were exchanged, compared to its average volume of 71,597. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.85 and a quick ratio of 3.75. The firm has a market cap of $85.24 million, a PE ratio of 15.59 and a beta of 2.77. The company’s fifty day moving average price is $5.62. Fatpipe Inc/UT has a 52-week low of $1.31 and a 52-week high of $10.77.

Institutional Trading of Fatpipe Inc/UT

A hedge fund recently bought a new position in Fatpipe Inc/UT stock. Renaissance Technologies LLC purchased a new stake in shares of Fatpipe Inc/UT (NASDAQ:FATN) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 25,300 shares of the company’s stock, valued at approximately $51,000. Renaissance Technologies LLC owned about 0.18% of Fatpipe Inc/UT at the end of the most recent reporting period.

Wall Street Analysts Forecast Growth

FATN has been the subject of several recent analyst reports. D. Boral Capital reiterated a “buy” rating and issued a $8.00 target price on shares of Fatpipe Inc/UT in a research note on Friday, May 1st. Wall Street Zen lowered shares of Fatpipe Inc/UT from a “buy” rating to a “hold” rating in a research report on Saturday. Northland Securities started coverage on shares of Fatpipe Inc/UT in a report on Monday, May 11th. They set an “outperform” rating and a $12.00 price target on the stock. Finally, Weiss Ratings raised shares of Fatpipe Inc/UT from a “sell (d-)” rating to a “sell (d)” rating in a research report on Friday, May 8th. Two analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $10.00.

Fatpipe Inc/UT Company Profile

FatPipe is a pioneer in enterprise-class, application-aware, secure software-defined wide area network (“SD-WAN”) solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies. Organizations, large and small, have become increasingly dependent on their information technology (“IT”) network infrastructure for data access and communications, and the critical importance of network reliability, extensibility, and durability has continued to grow as the volume of traffic across those networks expands.