Ceragon Networks Ltd (NASDAQ:CRNT)
Ceragon Networks Ltd (NASDAQ:CRNT) stock is up almost 7% at 10:30AM EST after the communications technology company released its Q2 financial report. CRNT shares closed at $2.23 on Friday then hit $2.44 this morning. Share volume is heavy – over ten times the 30-day daily average. Ceragon stock price chart:
Israeli-based Ceragon Networks Ltd (NASDAQ:CRNT) posted a Q2 2017 profit of $5 million, on $93.3 million in revenue, for a per share profit of $0.06. Revenues were up 22.8% from last quarter. Gross margins increased from 29.3% in Q1 2017 to 31.3%. Operating income came in at $8 million – much larger than the $$2 million posted in Q1.
Ira Palti, president and CEO of Ceragon Networks Ltd (NASDAQ:CRNT) said “We are pleased to report a very strong quarter, with total revenue boosted by the recognition of revenue related to large orders received in Q1 from a customer in India. As a result of the additional gross profit contribution from this extra business, Q2 net income was a record, except in those quarters where we had large non-recurring items with a positive impact on net income. We also generated positive cash flow, paid down additional debt, and increased our net cash to $26 million. Our bookings in Q2 support our expectation that we will return to a quarterly run rate of $75 to $80 million during the second half of the year.”
Sales had been declining for Ceragon Networks Ltd (NASDAQ:CRNT). In 2012 the company posted sales of $446.7 million and that number declined to $293.6 million for 2016. However, per share profitability has been achieved after years of losses. In 2014 the company lost (-$1.22) per share but in the following years they posted per share profits of $0.01 and $0.15 for 2016.
Likely based on past performance, the market has shunned the shares. YTD CRNT shares are down over 14% but up almost 2% for the year.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.