Aviat Networks’ Q4 earnings in line with expected ranges, but below guidance

Shares of Aviat Networks (AVNW) are higher over the last week after the company reported fourth quarter results on October 4. Following the quarterly results, an analyst said revenue and profitability were both in line with the preliminary expected ranges, but were below original guidance. Fourth quarter adjusted earnings per share came in at 72c on revenue of $116.7M, above consensus estimates of 52c and $113.37M, respectively. The company said it achieved its fourth consecutive fiscal year of growth in both revenue and adjusted EBITDA and that the Pasolink acquisition was accretive to adjusted EBITDA and non-GAAP net income in the quarter. Looking to fiscal 2025, Aviat forecast full year revenue between $450M-$490M, compared to analyst estimates of $484.16M, and sees adjusted EBITDA of $46M-$52M. As previously disclosed, Aviat has identified certain material weaknesses in its internal control over financial reporting for the 2024 fiscal year. The company said it has initiated and will continue to implement measures designed to improve its internal control over financial reporting to remediate these material weaknesses with oversight from the board’s Audit Committee and assistance from its external advisors. On Tuesday, Lake Street lowered the firm’s price target on Aviat Networks to $45 from $51 and kept a Buy rating on the shares. The analyst said that revenue and profitability were both in line with the preliminary expected ranges, but were below original guidance. While the firm is “disappointed” in the softer guidance for FY25, the outlook was “much better than most investors had feared.” The firm acknowledged the ramp after fiscal Q1 will be steep, so it is taking a more conservative stance regarding its own FY25 estimates, but remains bullish on the long-term. Shares of Aviat Networks are up nearly 8% over the last week.