CALX - Calix Q1 Earnings: Don't Be Tempted By This Dip Avoid
2024-04-23 02:47:15 ET
Summary
- Calix's stock is overvalued with double-digit negative revenue growth rates and a high forward EPS multiple of approximately 40x.
- The company faces challenges in customer decision-making, reduced lead times, and shifts in customer investment priorities.
- Despite a debt-free balance sheet and cash reserves, CALX stock remains unattractive due to its challenging revenue growth outlook and questionable capital allocation strategy.
Investment Thesis
Calix ( CALX ) delivered unappetizing guidance together with its Q1 2024 results . More specifically, I argue that in the best-case scenario, investors are eyeing up double-digit negative revenue growth rates and having to pay approximately 40x forward EPS. This is simply too expensive a valuation for Calix....
Calix Q1 Earnings: Don't Be Tempted By This Dip, Avoid