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  • Calix (CALX) Sees Pre-Hour Trading Boost On Strong Results

    Calix (CALX) Sees Pre-Hour Trading Boost On Strong Results

    Calix, Inc. (NYSE: CALX) shares are trading 9.03% up at $40.20 as of the last check during today’s pre-market session. The increase comes after the release of its fourth-quarter earnings report, which showed continued revenue growth and operational efficiency.

    Strong Fourth-Quarter Performance

    Calix reported revenue of $206.1 million, up 2.6% from the previous quarter, marking the second consecutive quarter of sequential revenue growth, highlighting the company’s strong performance in its managed services, cloud, and appliance-based platform model.

    Calix also continued its run of double-digit free cash flow for the seventh consecutive quarter, extending its run of positive free cash flow to 18 consecutive quarters, further solidifying its strong financial position. Record Gross Margin and Growing Market Presence

    The company achieved record gross margins once again, bolstered by the success of its broadband experience provider (BEP) customers. These clients have continued to expand their subscriber bases through Calix’s platform, cloud, and managed services, offering distinctive broadband experiences.

    Consequently, Calix reported a 34% year-over-year and 10% quarter-over-quarter increase in remaining performance obligations (RPOs), climbing to $325.8 million. Calix also welcomed 18 new broadband service providers during the quarter embarking on their subscriber experience journey.

    Additionally, CALX saw a rise in service adoption, adding 21 new platform deployments, 15 new cloud deployments, and 32 new managed service implementations. This expansion highlights the company’s ability to provide sustainable, profitable growth opportunities for broadband providers transitioning into experience-driven service models.

    Capitalizing on Industry Disruption

    Calix remains in the early stages of a transformative shift within the broadband industry. Its BEP customers continue to thrive amid market disruptions, leveraging Calix’s business model to differentiate their offerings and attract consumers, businesses, and municipal clients.

    As legacy network operators grapple with increasing commoditization, margin compression, and slowing growth, Calix aims to accelerate its expansion by converting more operators into broadband experience providers.

    Stock Performance and Industry Standing

    Together with the positive earnings report, CALX currently holds an ST score of 53, indicating a bearish stance within the Software-Application industry. Investors seeking stocks with stronger short-term performance can explore peer companies with higher ST scores with Bullish performance using our screener link.

  • 3 Best Communication Stocks to Buy this year

    3 Best Communication Stocks to Buy this year

    The communication industry is a large sector that goes from telecom to the internet and several other segments in the market.

    The communication industry consists of a wide range of companies that belong to telecom, media, video gaming, and Esports. Moreover, other sectors such as companies including movie production houses, television networks, and other content creators are also part of this large-scale industry.

    The technology revolution has changed the entire structure of the world—and communication ways have evolved with it. Still, around 47% of the world population is deprived of internet services. So, communication equipment plays a vital role to fill that gap. So, let’s have a look at the communication stocks with maximum potential going forward.

    AT&T (T)

    AT&T (T) is the second-largest U.S. mobile wireless network and the largest pay-television provider via its DirecTV subsidiary. The company is well-positioned in the world of communication and entertainment. AT&T’s WarnerMediais a leading and dominant entertainment production house.

    According to Reuters, the company is in talks with private equity firm TPG to divest a minority stake in DirecTV. The deal is estimated to be valued at around $15 million. The possible sale of a minority stake in DirecTV to TPG can be a strategy of A&AT to reduce its net debt, which was approximately $149 billion at the end of Q3 2020.

    Moreover, Forbes believes the gradual opening of the economy would take the stock price to soar up to 10% from its current levels. However, it’s difficult that the stock would go for the pre-COVID high any time soon.

    Cambium Networks (CMBM)

    Cambium Networks (CMBM) is a US-based fixed wireless networking system designed for wireless Internet service providers to provide Internet access. The basic services Cambium provides include Wi-Fi, wireless broadband systems and networking services, IoT systems, and switching solutions.

    In the third quarter of 2020, Cambium recorded revenues of $73 million, a 17% rise from the prior quarter and 11% YoY. While the company reported a record net income of $5.6 million.

    The company is performing decently with an increase in the demand for its services. The revenue continues to grow sequentially. The CEO of Cambium, Atul Bhatnagar highlighted that the record revenues and profitability during the past quarter were driven by high demand for wireless broadband connectivity.

    Cambium Networks (CMBM) has scheduled to release its Q4 and full-year 2020 results on Feb. 18, 2021. With strong demand across different portfolios of the company, the Q4 results are expected to report continued growth from Q3.

    Calix (CALX)

    The global cloud and software platform provider, Calix (CALX) is making way into the future of technology—the 5G world. CLAX stock has performed quite well with growth in the quarterly results.

    The third quarter 2020 results were better-than-expected which helped the stock momentum to push further. The revenue during Q3 soared over 31.4% to $150.5 million compared to the same period of 2019.

    The company has scheduled to announce the Q4 results on Jan. 27, 2021. Calix expects the revenue between $157 million to 161 million, higher than the consensus of $134.6 million. In the prior quarter, the company pulled off a 100% positive earnings surprise. It is anticipated to deliver such outcomes in Q4 as well.

    Recently, Calix announced that it was selected by TransWorld Network to provide end-to-end solutions and services. TransWorld will utilize Calix’s services to speed up its fiber-network buildout in the U.S. This deal will further accelerate the growth of the company in the long-term.