Aviat Networks (NASDAQ:AVNW) Issues Quarterly Earnings Results

Aviat Networks (NASDAQ:AVNW) released its quarterly earnings data on Tuesday. The communications equipment provider reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.18), FiscalAI reports. Aviat Networks had a net margin of 0.58% and a return on equity of 5.85%. The company had revenue of $101.97 million during the quarter, compared to analysts’ expectations of $103.55 million.

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

• Demand and backlog strengthened: First-quarter bookings exceeded $150 million, up 75% year over year, with a book-to-bill ratio above 1.5 and backlog up $70 million, or 19%, sequentially. Management said demand for its major MDU program exceeds what it can currently serve because of component constraints.
• Supply issues weighed on quarterly results: Revenue declined to $102.0 million from $107.3 million a year earlier, while non-GAAP gross margin fell to 29.6% from 33.8%. Management estimated component shortages and a Thailand flood together reduced revenue by about $10 million, and said competition for components is likely to persist near term.
• Guidance reflects demand and customer mix changes: Aviat set fiscal 2027 revenue guidance at $450 million–$475 million and maintained adjusted EBITDA guidance of $50 million–$55 million. It plans to exit $25 million–$30 million of low-margin APAC revenue, which management expects to have no profitability impact and may improve gross margin by 1%–2%.
• Product momentum and new opportunities: Aprisa bookings rose 61% year over year, and the company launched LEO satellite integration and a quad all-outdoor radio. Aviat also received its first BEAD-related order, though management expects the program to contribute mainly in calendar 2027 and beyond.

Aviat Networks Stock Performance

Aviat Networks stock traded down $1.78 during mid-day trading on Tuesday, hitting $17.35. The company had a trading volume of 96,839 shares, compared to its average volume of 158,915. The company has a market capitalization of $223.12 million, a price-to-earnings ratio of 92.71 and a beta of 0.77. Aviat Networks has a 12-month low of $13.92 and a 12-month high of $27.02. The company’s fifty day moving average is $19.83 and its 200-day moving average is $21.07. The company has a current ratio of 1.97, a quick ratio of 1.66 and a debt-to-equity ratio of 0.33.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Wall Street Zen upgraded Aviat Networks from a “hold” rating to a “buy” rating in a research note on Saturday, October 3rd. Roth Capital reissued a “buy” rating and set a $38.00 price target (up from $34.00) on shares of Aviat Networks in a research report on Friday, August 28th. Zacks Research upgraded shares of Aviat Networks from a “strong sell” rating to a “hold” rating in a report on Thursday, November 5th. Weiss Ratings downgraded shares of Aviat Networks from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 30th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Aviat Networks in a research report on Friday, August 28th. Eight analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Aviat Networks currently has an average rating of “Moderate Buy” and a consensus price target of $32.71.

Insiders Place Their Bets

In other news, VP Erin Boase sold 1,347 shares of Aviat Networks stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $19.69, for a total value of $26,522.43. Following the sale, the vice president directly owned 28,275 shares of the company’s stock, valued at $556,734.75. The trade was a 4.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Pete A. Smith sold 14,264 shares of the business’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $19.69, for a total value of $280,858.16. Following the transaction, the chief executive officer directly owned 367,840 shares in the company, valued at $7,242,769.60. This trade represents a 3.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 16,240 shares of company stock valued at $319,766 in the last ninety days. 5.70% of the stock is owned by corporate insiders.

About Aviat Networks

Aviat Networks, Inc provides wireless networking solutions for communications service providers, government agencies and enterprises. The company specializes in mission-critical connectivity for applications where reliable, high-capacity communications are essential, including telecommunications, public safety, utilities, transportation and defense.

Its product portfolio includes microwave and millimeter-wave wireless transmission systems, routers, access and aggregation equipment, network management software and related cybersecurity solutions.