Aviat Networks (NASDAQ:AVNW) Releases Earnings Results, Beats Expectations By $0.09 EPS

Aviat Networks (NASDAQ:AVNW) announced its quarterly earnings data on Thursday. The communications equipment provider reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.09, FiscalAI reports. The business had revenue of $120.89 million for the quarter, compared to analysts’ expectations of $110.12 million. Aviat Networks had a return on equity of 6.89% and a net margin of 2.08%.

Here are the key takeaways from Aviat Networks’ conference call:

• Fiscal 2026 ended with solid momentum: fourth-quarter revenue rose 4.8% year over year to $120.9 million, full-year revenue increased 1.2% to $439.7 million, and backlog reached a record $367 million, up 14% year over year.
• Aviat issued fiscal 2027 guidance for revenue of $455 million to $470 million and adjusted EBITDA of $50 million to $55 million, with growth expected to be weighted toward the second half. Management cited MDU deployments, private networks, BEAD funding, and new international Tier 1 opportunities as potential upside drivers.
• The company expects a previously announced $25 million-$30 million MDU order to generate revenue in fiscal 2027, primarily beginning in the December quarter. Management said the broader MDU market could approach $100 million annually if subscriber growth and Aviat’s competitive share develop favorably.
• Fourth-quarter non-GAAP gross margin fell to 30.9% from 34.7% a year earlier, pressured primarily by component shortages and inflation involving memory, PCBs, capacitors, and FPGAs. Aviat plans to pursue price increases and expects improvement beginning in the December quarter, but management characterized a return to mid-30% margins as aspirational.
• Aviat said LEO satellite connectivity is currently excluded from fiscal 2027 guidance and views it as complementary to its core business, particularly for redundant backhaul and coverage-gap solutions. The company is conducting customer trials, while BEAD is expected to have only a small contribution in the initial outlook.

Aviat Networks Stock Up 2.5%

Shares of NASDAQ:AVNW opened at $21.44 on Friday. The firm has a 50 day simple moving average of $20.95 and a 200-day simple moving average of $21.37. Aviat Networks has a twelve month low of $13.92 and a twelve month high of $27.02. The company has a current ratio of 1.99, a quick ratio of 1.67 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $277.43 million, a PE ratio of 31.07 and a beta of 0.70.

Aviat Networks News Summary

Here are the key news stories impacting Aviat Networks this week:

• Positive Sentiment: Quarterly results exceeded expectations. Aviat reported fiscal fourth-quarter non-GAAP earnings of $0.64 per share, above estimates ranging from $0.40 to $0.50. Revenue rose 4.8% year over year to $120.9 million, while adjusted EBITDA reached $11.9 million. Aviat Networks Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Fiscal 2027 guidance points to continued growth. Management projected revenue of $455 million to $470 million, broadly in line with the $464.1 million consensus estimate, and adjusted EBITDA of $50 million to $55 million as its MDU business ramps. The outlook suggests improving profitability from fiscal 2026 adjusted EBITDA of $36.7 million. Aviat Outlines Fiscal 2027 Revenue and EBITDA Guidance
• Positive Sentiment: Demand indicators strengthened. Fiscal-year backlog increased 14% to $367 million, book-to-bill remained above 1, and Aviat secured a $25 million to $30 million U.S. order from an existing customer. North American fourth-quarter revenue climbed 17.8% to $68.3 million, supporting the bullish case for future sales. Aviat Networks Fiscal 2026 Financial Results
• Neutral Sentiment: Aviat completed its sixth consecutive year of revenue growth, with fiscal 2026 revenue up 1.2% to $439.7 million. The company also repurchased $2.2 million of shares during the quarter, though the buyback was relatively small compared with the company’s market capitalization. Aviat Networks Achieves Sixth Consecutive Year of Revenue Growth
• Negative Sentiment: GAAP profitability remained weak. Despite the adjusted earnings beat, Aviat posted a fourth-quarter GAAP net loss of $1.3 million, or $0.10 per share, compared with GAAP operating income of $5.8 million versus $8.9 million a year earlier. This may temper enthusiasm if investors place greater weight on reported profitability.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on AVNW shares. Northland Securities increased their price target on Aviat Networks from $25.00 to $30.00 and gave the company an “outperform” rating in a research report on Thursday, July 2nd. Lake Street Capital set a $31.00 target price on shares of Aviat Networks and gave the company a “buy” rating in a report on Tuesday, May 5th. Rafferty Capital Markets assumed coverage on shares of Aviat Networks in a research note on Tuesday, June 30th. They issued a “buy” rating and a $36.00 price target for the company. Weiss Ratings reiterated a “sell (d)” rating on shares of Aviat Networks in a report on Monday, August 3rd. Finally, Zacks Research raised shares of Aviat Networks from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. Eight investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $33.14.

Institutional Investors Weigh In On Aviat Networks

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its stake in Aviat Networks by 477.2% in the second quarter. California State Teachers Retirement System now owns 3,619 shares of the communications equipment provider’s stock valued at $80,000 after purchasing an additional 2,992 shares during the period. Public Employees Retirement System of Ohio purchased a new position in shares of Aviat Networks during the second quarter worth about $274,000. Ancora Advisors LLC acquired a new position in Aviat Networks in the 2nd quarter valued at about $55,000. Tieton Capital Management LLC purchased a new stake in Aviat Networks during the 2nd quarter valued at approximately $15,017,000. Finally, Bank of New York Mellon Corp purchased a new stake in Aviat Networks during the 2nd quarter valued at approximately $1,076,000. Hedge funds and other institutional investors own 78.62% of the company’s stock.

Aviat Networks Company Profile

Aviat Networks, Inc is a specialist in wireless transport solutions, designing, manufacturing and selling microwave networking products that enable the secure and reliable transmission of data, voice and video. The company’s offerings address mission-critical communications needs for a broad range of end markets, including telecommunications service providers, utilities, government agencies and enterprises. Its product portfolio spans high-capacity packet microwave radios, IP transport systems and network management software.

Aviat’s core product lines include the WTM series of packet microwave platforms, which deliver scalable throughput and advanced resilience features, and the Eclipse packet microwave systems, which combine broadband capacity with synchronization, security and quality-of-service capabilities.