Fatpipe Inc/UT (NASDAQ:FATN) Releases Earnings Results, Beats Estimates By $0.02 EPS

Fatpipe Inc/UT (NASDAQ:FATN) issued its quarterly earnings data on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.07 by $0.02, FiscalAI reports. The firm had revenue of $5.03 million during the quarter. Fatpipe Inc/UT had a return on equity of 28.85% and a net margin of 25.88%.

Here are the key takeaways from Fatpipe Inc/UT’s conference call:

• Sales increased approximately 27%, while income rose about 65% year over year; EPS improved to $0.09 from $0.05. Management said gross margins remain around 92%–93% despite larger deals.
• FatPipe reported expanding deal sizes and momentum through its partner-led model, including TD SYNNEX, and said approximately 30%–35% of a recently announced $7 million education order may be recognized in the current quarter.
• The company is winning customers from VeloCloud, Juniper, and other incumbent vendors, citing responsive support, competitive pricing, and product performance as differentiators. Management said the VeloCloud replacement pipeline remains active.
• Management increased investment in growth, including roughly $400,000 in marketing during the quarter and additional inventory purchases to support large orders; executives acknowledged that margins may decline somewhat as the company scales.
• FatPipe said its Total Security 360 cybersecurity product is fully tested and entering customer deployments, while SATBOOST is gaining interest across public- and private-sector applications, including satellite and 5G connectivity. The company also plans to expand its sales team from roughly 30–31 people toward 36–38 by fiscal year-end.

Fatpipe Inc/UT Trading Down 10.2%

Fatpipe Inc/UT stock opened at $4.60 on Friday. The company has a current ratio of 3.85, a quick ratio of 3.75 and a debt-to-equity ratio of 0.17. The stock’s fifty day moving average price is $5.58. The stock has a market cap of $64.47 million, a PE ratio of 12.72 and a beta of 2.77. Fatpipe Inc/UT has a 12-month low of $1.31 and a 12-month high of $10.77.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. D. Boral Capital reiterated a “buy” rating and issued a $8.00 target price on shares of Fatpipe Inc/UT in a report on Friday, May 1st. Northland Securities started coverage on Fatpipe Inc/UT in a report on Monday, May 11th. They issued an “outperform” rating and a $12.00 price objective on the stock. Weiss Ratings raised Fatpipe Inc/UT from a “sell (d-)” rating to a “sell (d)” rating in a research report on Friday, May 8th. Finally, Wall Street Zen raised shares of Fatpipe Inc/UT from a “hold” rating to a “buy” rating in a research note on Saturday, July 4th. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $10.00.

Institutional Investors Weigh In On Fatpipe Inc/UT

A hedge fund recently bought a new position in Fatpipe Inc/UT stock. Renaissance Technologies LLC acquired a new stake in Fatpipe Inc/UT (NASDAQ:FATN) in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 25,300 shares of the company’s stock, valued at approximately $51,000. Renaissance Technologies LLC owned 0.18% of Fatpipe Inc/UT at the end of the most recent quarter.

Fatpipe Inc/UT Company Profile

FatPipe is a pioneer in enterprise-class, application-aware, secure software-defined wide area network (“SD-WAN”) solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies. Organizations, large and small, have become increasingly dependent on their information technology (“IT”) network infrastructure for data access and communications, and the critical importance of network reliability, extensibility, and durability has continued to grow as the volume of traffic across those networks expands.