AVNW - Aviat Networks: Q2 Earnings Better Than Expected With Balance Sheet Risk From Pasolink Acquisition
2024-02-10 08:44:13 ET
Summary
- Aviat Networks' Q2 earnings beat expectations, but the company's Q3 results are expected to show a YoY decrease.
- Aviat offers secure wireless transport and network management services, serving clients in various industries.
- The company has secured partnerships and expects significant revenue contributions from them in the future.
- Valuation is attractive, but long-term earnings growth uncertainty and short-term balance sheet risks exist.
- Due to the all-round strong financials and good margin of safety for the investment at the moment, my analyst rating for Aviat stock is a Buy.
Aviat Networks' fiscal 2024 Q2 financial results (AVNW) have been released. While consensus estimates indicated a YoY 33% decrease for Q2 and a further YoY drop of 48% in Q3 to come, the Q2 reports now released actually show a YoY 4.8% growth, significantly outperforming expectations....
Aviat Networks: Q2 Earnings Better Than Expected, With Balance Sheet Risk From Pasolink Acquisition