Ubiquiti Is Maintained at Buy by BWS Financial

Airgain, Inc. AIRG recently unveiled its cutting-edge AT-Flight asset tracker, designed specifically for the healthcare and life sciences Internet of Things (IoT) sectors. This innovative tracker aims to address the growing demand for real-time tracking of high-value, temperature-sensitive assets across both ground and air transportation, particularly in cold chain logistics.

Key Features of AIRG’s AT-Flight Asset Tracker

In accordance with the U.S. FAA (Federal Aviation Administration) regulations, Airgain’s AT-Flight solution integrates AI (artificial intelligence) with ambient sensor technology, enabling it to automatically detect flight events and switch to airplane mode. This seamless automation will likely improve operational efficiency, reducing the risk of human error and making it easier for businesses to track critical assets during air travel.

Another key feature of the device is its extended battery life, which outperforms many similar products available in the market. Reducing the need for frequent battery changes helps minimize operational disruptions and lowers long-term costs. In addition to its impressive battery performance, the AT-Flight is equipped with flight-approved battery options, making it well-suited to the rigorous demands of air transportation.

Moreover, the device can function in temperatures as low as -20°C, making it particularly suitable for tracking sensitive medical goods such as vaccines and other pharmaceuticals. Its ability to withstand harsh environmental conditions ensures that assets can be monitored and protected throughout their journey, whether in-ground or air transport.

Does AIRG Stand to Gain From the Product Launch?

Airgain’s asset tracker line uses a range of location technologies, including GPS, real-time cellular and Wi-Fi triangulation, providing businesses with customizable options to meet their specific needs. The launch of the AT-Flight is a key part of Airgain’s broader strategy to expand its presence in high-value IoT markets. With a range of customizable tracking options and AI capabilities, the company aims to cater to specific customer needs, providing a versatile tool for businesses across various sectors, including healthcare, cold chain logistics and pharmaceuticals.

The device has already received critical industry certifications, including PTCRB, FCC, and DO-160, and Airgain is actively pursuing further approvals with major U.S. and European airlines to ensure its wide adoption across the transportation industry.

These advancements are expected to generate incremental demand for this solution, leading to higher revenues. An improved financial performance is likely to propel the stock upward.

AIRG’s Stock Price Performance

Shares of Airgain have gained 354.5% over the past year compared with the industry’s growth of 83%.

Ubiquiti, Inc. UI reported strong first-quarter fiscal 2025 results, with both the bottom and top line surpassing the respective Zacks Consensus Estimate. The New York-based networking products and solutions providers reported revenue growth year over year, owing to healthy traction in the Enterprise Technology segment.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Healthy demand in North America, Europe, The Middle East and Africa region is a major tailwind.

UI’s Net Income

Net income, on a GAAP basis, in the quarter was $128 million or $2.12 per share compared with $87.8 million or $1.45 per share in the year-ago quarter. Despite higher operating expenses, solid top-line growth boosted the net income.

Non-GAAP net income in the first quarter of fiscal 2025 was $129.3 million or $2.14 per share, compared with $88.9 million or $1.47 per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of $1.77.

Ubiquiti Inc. Price, Consensus and EPS Surprise

Ubiquiti Inc. price-consensus-eps-surprise-chart | Ubiquiti Inc. Quote

UI’s Revenues

Net sales in the quarter increased to $550.3 million from $463.1 million in the prior year quarter. Healthy demand across all regions supported the top line. The top line beat the consensus estimate by $15 million.

Enterprise Technology generated $470.2 million in revenues, up from $380.1 million in the prior year quarter. The top line surpassed our estimate of $438.1 million. Strong demand trends in all regions except South America drove net sales in this segment.

Service Provider Technology registered $80.2 million in revenues, down from $83 million in the year-ago quarter. The decline in revenues is primarily attributed to soft demand in North America and EMEA (Europe, The Middle East and Africa) regions. However, net sales beat our revenue estimate of $78.9 million.

Region-wise, revenues from North America stood at $271.2 million compared with $224.8 million in the year-ago quarter. Net sales from EMEA aggregated $204.9 million, up from $172.4 million. Asia Pacific revenues increased to $40.9 million from $36.1 million in the year-earlier quarter. Revenues from South America were $33.3 million, up from $29.8 million a year ago.

Other Details for UI

During the September quarter, gross profit was $231.6 million compared with $183.9 million in the year-ago quarter, with respective margins of 42.1% and 39.7%. Despite increasing warehouse-related costs and shipping expenses, favorable product mix, lower excess and obsolete inventory charges drove the gross margin.

The research and development expenses increased to $38 million from $36.3 million due to higher employee-related expenses, depreciation and software costs. Operating income was $169.2 million, up from $128.3 million in the prior year.

UI’s Cash Flow & Liquidity

In first quarter of fiscal 2025, Ubiquiti generated $233.7 million of cash in operating activities compared with $67.7 million in prior year quarter. As of Sept. 30, 2024, the company had $165.2 million in cash and cash equivalents, with $527.2 million of long-term debt.

Zacks Rank & Other Stocks to Consider

Ubiquiti currently carries a Zacks Rank #2 (Buy).

Arista Networks, Inc. ANET sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 14.83%. It provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 gigabit Ethernet switches and routers optimized for next-generation data center networks.

Zillow Group, Inc. ZG carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters.

The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor. Solid growth in the Premier Agent business is driving growth in the Residential segment.

Workday Inc. WDAY carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.

Zacks Investment Research

U.S. stocks were higher, with the Dow Jones index gaining more than 200 points on Friday.

Shares of Sony Group Corporation rose sharply during Thursday's session after reporting better-than-expected second-quarter earnings and raising FY24 revenue outlook.

Sony Group reported fiscal second-quarter 2024 consolidated sales growth of 3% year-on-year to $19.44 billion (2.91 trillion Japanese yen), missing the analyst consensus estimate of $19.62 billion. EPS of $0.37 (55.74 yen) beat the analyst consensus estimate of $0.27.

Sony shares jumped 9.4% to $19.98 on Friday.

Here are some other big stocks recording gains in today's session.

• Innodata Inc. shares surged 67.7% to $40.84.
• Sezzle Inc. shares jumped 51.7% to $380.00 after the company reported a year-over-year increase in third-quarter financial results, raised its FY24 guidance, and issued FY25 adjusted EPS guidance above estimates.
• Upstart Holdings, Inc. surged 44% to $79.89 after the company reported better-than-expected quarterly financial results.
• indie Semiconductor, Inc. gained 43.3% to $4.9200 after the company reported better-than-expected third-quarter financial results.
• Doximity, Inc. gained 37.8% to $59.87 following better-than-expected second-quarter financial results.
• Fortrea Holdings Inc. rose 32% to $23.82 after the company issued FY24 revenue guidance above estimates.
• Axon Enterprise, Inc. gained 26.3% to $591.89 after the company reported better-than-expected third-quarter financial results and issued current-quarter revenue guidance above estimates.
• Ubiquiti Inc. gained 20.4% to $314.49 following upbeat quarterly earnings.
• Bloom Energy Corporation rose 19.8% to $12.78. The company announced a 20 MW utility deal with FPM Development and Baird maintained an Outperform rating on the stock.
• Tempus AI, Inc gained 18.8% to $67.50.
• AAON, Inc. shares rose 15.7% to $137.83 after the company reported better-than-expected quarterly financial results. Also, Baird raised its price target on the stock from $130 to $138 and maintained an Outperform rating.
• Lumentum Holdings Inc. gained 14.4% to $84.25 after the company reported better-than-expected first-quarter financial results and issued second-quarter guidance above estimates.
• Toast, Inc. gained 13.3% to $37.00 after the company reported better-than-expected quarterly financial results.
• Tesla, Inc. rose 8.3% to $321.66. The stock has continued to gain following the US presidential election.
• SharkNinja, Inc. gained 7.1% to $102.80.
• Expedia Group, Inc. gained 5.8% to $184.24 after the company reported better-than-expected third-quarter adjusted EPS results.

Now Read This:

• How To Earn $500 A Month From Nvidia Stock After Trump Win

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.