Aviat Networks (NASDAQ:AVNW) Issues Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Aviat Networks (NASDAQ:AVNW) posted its quarterly earnings data on Thursday. The communications equipment provider reported $0.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.09, FiscalAI reports. The business had revenue of $120.89 million during the quarter, compared to the consensus estimate of $110.12 million. Aviat Networks had a return on equity of 5.84% and a net margin of 0.58%.

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

• Fiscal 2026 ended with solid momentum: fourth-quarter revenue rose 4.8% year over year to $120.9 million, full-year revenue increased 1.2% to $439.7 million, and backlog reached a record $367 million, up 14% year over year.
• Aviat issued fiscal 2027 guidance for revenue of $455 million to $470 million and adjusted EBITDA of $50 million to $55 million, with growth expected to be weighted toward the second half. Management cited MDU deployments, private networks, BEAD funding, and new international Tier 1 opportunities as potential upside drivers.
• The company expects a previously announced $25 million-$30 million MDU order to generate revenue in fiscal 2027, primarily beginning in the December quarter. Management said the broader MDU market could approach $100 million annually if subscriber growth and Aviat’s competitive share develop favorably.
• Fourth-quarter non-GAAP gross margin fell to 30.9% from 34.7% a year earlier, pressured primarily by component shortages and inflation involving memory, PCBs, capacitors, and FPGAs. Aviat plans to pursue price increases and expects improvement beginning in the December quarter, but management characterized a return to mid-30% margins as aspirational.
• Aviat said LEO satellite connectivity is currently excluded from fiscal 2027 guidance and views it as complementary to its core business, particularly for redundant backhaul and coverage-gap solutions. The company is conducting customer trials, while BEAD is expected to have only a small contribution in the initial outlook.

Aviat Networks Stock Performance

Shares of NASDAQ AVNW opened at $20.00 on Friday. The firm’s 50-day moving average price is $20.95 and its 200-day moving average price is $21.36. Aviat Networks has a 52-week low of $13.92 and a 52-week high of $27.02. The company has a market cap of $258.80 million, a PE ratio of 105.26 and a beta of 0.70. The company has a quick ratio of 1.67, a current ratio of 1.99 and a debt-to-equity ratio of 0.36.

Institutional Investors Weigh In On Aviat Networks

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. California State Teachers Retirement System raised its stake in Aviat Networks by 477.2% during the 2nd quarter. California State Teachers Retirement System now owns 3,619 shares of the communications equipment provider’s stock valued at $80,000 after buying an additional 2,992 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new position in shares of Aviat Networks in the 2nd quarter worth $274,000. Ancora Advisors LLC bought a new stake in shares of Aviat Networks in the second quarter worth $55,000. Tieton Capital Management LLC purchased a new stake in Aviat Networks during the second quarter valued at $15,017,000. Finally, Bank of New York Mellon Corp purchased a new stake in Aviat Networks during the second quarter valued at $1,076,000. Hedge funds and other institutional investors own 78.62% of the company’s stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on AVNW. Northland Securities increased their price target on shares of Aviat Networks from $25.00 to $30.00 and gave the stock an “outperform” rating in a research note on Thursday, July 2nd. Weiss Ratings upgraded shares of Aviat Networks from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday. Citizens Jmp decreased their target price on shares of Aviat Networks from $30.00 to $25.00 and set a “market outperform” rating for the company in a research note on Wednesday, May 6th. Lake Street Capital set a $31.00 price target on Aviat Networks and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Finally, Roth Capital reaffirmed a “buy” rating and set a $38.00 price objective (up from $34.00) on shares of Aviat Networks in a research report on Friday. Eight research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $32.71.

Aviat Networks Company Profile

Aviat Networks, Inc is a specialist in wireless transport solutions, designing, manufacturing and selling microwave networking products that enable the secure and reliable transmission of data, voice and video. The company’s offerings address mission-critical communications needs for a broad range of end markets, including telecommunications service providers, utilities, government agencies and enterprises. Its product portfolio spans high-capacity packet microwave radios, IP transport systems and network management software.

Aviat’s core product lines include the WTM series of packet microwave platforms, which deliver scalable throughput and advanced resilience features, and the Eclipse packet microwave systems, which combine broadband capacity with synchronization, security and quality-of-service capabilities.