HLIT - Here's Why Harmonic Stock Soared Higher While the Nasdaq Dropped
2024-04-30 15:08:00 ET
Shares of video-streaming technology company Harmonic (NASDAQ: HLIT) soared higher on Tuesday after reporting financial results for the first quarter of 2024. As of 2 p.m. ET, Harmonic stock was up 15% in stark contrast to the 1% drop for the Nasdaq .
In Q1, Harmonic generated revenue of $122 million, which was down 23% year over year. This included a 21% decline in its broadband-segment revenue and a 25% decline in its smaller video-segment revenue. The company's gross margin also went down. And on the bottom line, it had a net loss of $8 million compared with net income of $5 million in the prior-year period.
With all the financial metrics trending in the wrong direction, investors might rightly wonder why Harmonic stock is up. Here's why: There's some cyclicality with the company's revenue, and one number points to improvements in the near future.
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Here's Why Harmonic Stock Soared Higher While the Nasdaq Dropped