Calix, a leading provider of cloud, systems and software platforms for service providers, is set to release its latest quarterly earnings report on Monday, October 28th. Analysts anticipate an earnings per share (EPS) of $0.09, with investors eagerly awaiting news of potential earnings beats and positive guidance. This article delves into key metrics, historical performance, and analyst insights to guide investors ahead of the announcement.
Calix’s recent earnings report and guidance have raised concerns among investors. Despite a strong balance sheet with no debt and 14% of its market cap in cash, the company faces challenges including uncertainty in customer funding, reduced lead times, and shifting investment priorities. Its revenue growth rates are expected to decline significantly, with best-case scenarios indicating negative 20% y/y growth in Q2 2024. Valued at approximately 40x forward EPS, Calix is considered overpriced given its revenue growth outlook. Additionally, management’s previous share repurchase strategy, which involved buying shares at higher prices, has left shareholders frustrated. Overall, Calix is deemed a sell due to its expensive valuation and weak revenue growth prospects.
Calix, Inc. (CALX) reported Q1/2024 results in line with guidance, but below analyst expectations. Revenue and profitability declined, despite solid free cash flow. The appliance business faced challenges due to customer indecision on government funding, shorter lead times, and spending plan adjustments. The company’s guidance for Q2 also fell short of consensus estimates. Analysts are expected to reduce estimates, and the stock’s valuation is seen as rich. Stimulus funding delays and ongoing headwinds pose risks to future expectations.
