Overview
Communications tech firm's Q4 revenue fell yr/yr, missing analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Outlook
Ribbon projects 2026 revenue between $840 mln and $875 mln
Company expects 2026 non-GAAP gross margin of 52.5% to 53.5%
Ribbon anticipates 2026 adjusted EBITDA between $105 mln and $120 mln
Result Drivers
PROJECT DELAYS - Delays in customer projects and budget timing negatively impacted Q4 results, according to CEO Bruce McClelland
VOICE MODERNIZATION - Record product and services bookings in Q4 were driven by new voice modernization programs
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $227 mln | $241.35 mln (6 Analysts) |
Q4 Adjusted EPS | Beat | $0.59 | $0.11 (6 Analysts) |
Q4 EPS | $0.50 | ||
Q4 Adjusted Net Income | Beat | $106 mln | $20.88 mln (6 Analysts) |
Q4 Net Income | $89 mln | ||
Q4 Adjusted EBITDA | Miss | $40 mln | $45.17 mln (5 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Ribbon Communications Inc is $6.00, about 123% above its February 4 closing price of $2.69
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nPn87j8Fja
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)