Aviat Networks (NASDAQ:AVNW) Releases Earnings Results, Misses Estimates By $0.18 EPS

Aviat Networks (NASDAQ:AVNW) posted its quarterly earnings data on Tuesday. The communications equipment provider reported $0.12 EPS for the quarter, missing the consensus estimate of $0.30 by ($0.18), FiscalAI reports. Aviat Networks had a positive return on equity of 4.10% and a negative net margin of 0.10%. The firm had revenue of $101.97 million for the quarter, compared to the consensus estimate of $103.55 million.

Here are the key takeaways from Aviat Networks’ conference call:

• Demand and backlog strengthened: First-quarter bookings exceeded $150 million, up 75% year over year, with a book-to-bill ratio above 1.5 and backlog up $70 million, or 19%, sequentially. Management said demand for its major MDU program exceeds what it can currently serve because of component constraints.
• Supply issues weighed on quarterly results: Revenue declined to $102.0 million from $107.3 million a year earlier, while non-GAAP gross margin fell to 29.6% from 33.8%. Management estimated component shortages and a Thailand flood together reduced revenue by about $10 million, and said competition for components is likely to persist near term.
• Guidance reflects demand and customer mix changes: Aviat set fiscal 2027 revenue guidance at $450 million–$475 million and maintained adjusted EBITDA guidance of $50 million–$55 million. It plans to exit $25 million–$30 million of low-margin APAC revenue, which management expects to have no profitability impact and may improve gross margin by 1%–2%.
• Product momentum and new opportunities: Aprisa bookings rose 61% year over year, and the company launched LEO satellite integration and a quad all-outdoor radio. Aviat also received its first BEAD-related order, though management expects the program to contribute mainly in calendar 2027 and beyond.

Aviat Networks Stock Performance

Shares of AVNW stock opened at $16.44 on Thursday. The firm has a market capitalization of $211.40 million, a price-to-earnings ratio of -411.00 and a beta of 0.77. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.97 and a quick ratio of 1.66. The business has a fifty day moving average of $19.70 and a 200 day moving average of $21.02. Aviat Networks has a 1 year low of $13.92 and a 1 year high of $27.02.

Insider Activity

In related news, VP Erin Boase sold 1,347 shares of Aviat Networks stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $19.69, for a total transaction of $26,522.43. Following the completion of the sale, the vice president owned 28,275 shares of the company’s stock, valued at $556,734.75. The trade was a 4.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Pete A. Smith sold 14,264 shares of Aviat Networks stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $19.69, for a total transaction of $280,858.16. Following the sale, the chief executive officer owned 367,840 shares of the company’s stock, valued at approximately $7,242,769.60. The trade was a 3.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 16,240 shares of company stock worth $319,766. Company insiders own 5.70% of the company’s stock.

Analyst Ratings Changes

AVNW has been the subject of several recent analyst reports. Citigroup restated a “market outperform” rating on shares of Aviat Networks in a research note on Friday, August 28th. Zacks Research raised Aviat Networks from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 5th. Weiss Ratings lowered Aviat Networks from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 30th. Roth Capital reiterated a “buy” rating and set a $38.00 price objective (up from $34.00) on shares of Aviat Networks in a report on Friday, August 28th. Finally, Wall Street Zen raised Aviat Networks from a “hold” rating to a “buy” rating in a research report on Saturday, October 3rd. Eight research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $32.57.

Aviat Networks Company Profile

Aviat Networks, Inc. provides wireless transport solutions used to build and operate communications networks. Its offerings include microwave radio systems and related equipment that carry voice and data traffic, particularly where fiber-optic connections are unavailable, impractical or need to be supplemented. The company also offers IP networking products, network management software and services such as network planning, installation, maintenance and technical support. Its solutions serve telecommunications providers as well as customers in sectors including utilities, government and public safety.