EXTR - Extreme Networks' Earnings: Fiscal H2 2024 Outlook Disappoints Investors

2024-02-01 03:44:09 ET

Summary

• Extreme Networks delivered a lackluster fiscal H2 2024 outlook, especially with significantly worse-than-expected guidance for fiscal Q3 2024, leaving investors bewildered.
• Despite the current challenges, there is optimism that Extreme Networks can bounce back from a low base after fiscal Q3 2024.
• The stock is priced at approximately 10x forward non-GAAP operating income, suggesting that negative news might already be factored in.

Investment Thesis

Extreme Networks ( EXTR ) delivered a lackluster outlook for fiscal H2 2024 that left investors bewildered. Crucially, Extreme Networks' guidance for fiscal Q3 2024 was meaningfully worse than investors were expecting to see....

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