Harmonic ( NASDAQ: HLIT ) stock rose to a 7-month high on Tuesday after the firm raised its 2022 guidance and posted strong Q2 results that were slightly higher than Street estimates.
HLIT expects 2022 adj. EPS of $0.44-$0.52 vs. consensus estimate of $0.45. Its prior outlook was $0.34-$0.45.
2022 net revenue is projected to be $607M-$627M - driven by increase in expected cable segment revenues - vs. consensus estimate of $615.81M. Prior outlook was $585M-$625M.
2022 adj. gross margin is estimated to be 49.4-50.7% vs. prior outlook of 49.1-50.2%.
HLIT expects Q3 adj. EPS of $0.08-$0.12 vs. consensus estimate of $0.10. Net revenue is projected to be $147M-$157M vs. consensus estimate of $153.21M, while adj. gross margin is expected to be 48.9-50.5%.
HLIT reported Q2 adj. EPS of $0.16 and revenue of $157.4M, up 38.8% Y/Y. Cable access segment revenue grew 62% to $81.2M and video segment revenue increased 20% to $76.2M, with video SaaS revenue up 69% at $8.6M.
Backlog and deferred revenue rose 37.6% to $477.8M, while bookings were $140.9M vs. $186.9M from Q2 2021.
Meanwhile, Barclays raised its price target on HLIT to $14 from $13, implying potential upside of 29% to its last close.
The brokerage maintained its Overweight rating, in-line with SA Quant's bullish rating , as cable access demand continues to exceed expectations. Wall Street analysts on average rated HLIT Buy (2 Strong Buy, 3 Buy, 1 Hold).
Shares of HLIT fell 5.8% YTD but gained 22.8% in the last 6 months.
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Harmonic stock climbs to 7-month high on raised guidance, strong results