Insights

Why Harmonic Stock Is Up Today

What happened 
Shares of Harmonic (NASDAQ: HLIT), a virtualized cable access and video delivery company, were rising Tuesday after it reported better-than-expected first-quarter results on both the top and bottom lines. 
The tech stock was up an impressive 15% as of 2:11 p.m. ET.
So what 
The company reported first-quarter sales of $147.4 million — up 32% year-over-year — which beat analysts’ consensus estimate of $136.4 million. Harmonic’s non-GAAP earnings per share of $0.08 — up from $0.04 in the year-ago quarter — also surpassed Wall Street’s expectation of $0.04 per share. 
Image source: Getty Images.

Harmonic CEO Patrick Harshman said in a press release that the company’s strong financial performance in the quarter was “driven by Cable Access segment revenue growth of 98% and Video segment gross margin expansion.” 
Harshman added that the company’s “robust bookings” resulted in a record backlog and deferred revenue for the quarter. Bookings reached $205.5 million in the quarter, up 113% from $96.3 million in the year-ago quarter. 
Other highlights from the report included non-GAAP net income of $8.9 million, an increase of 98%, and adjusted EBITDA of $14.5 million — up from $9.1 million in the year-ago quarter. 
Now what
Investors are understandably happy with Harmonic’s first-quarter results, and they may have more to look forward to based on management’s full-year guidance. 
Harmonic’s leadership forecast that non-GAAP earnings per share for 2022 will be in the range of $0.34 to $0.45. Analysts’ current average estimate is for just $0.35 per share. Additionally, the company’s entire revenue guidance range of between $585 million and $625 million exceeds Wall Street’s expectation of $584.4 million. 
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened 

Shares of Harmonic (NASDAQ: HLIT), a virtualized cable access and video delivery company, were rising Tuesday after it reported better-than-expected first-quarter results on both the top and bottom lines. 

The tech stock was up an impressive 15% as of 2:11 p.m. ET.

So what 

The company reported first-quarter sales of $147.4 million — up 32% year-over-year — which beat analysts’ consensus estimate of $136.4 million. Harmonic’s non-GAAP earnings per share of $0.08 — up from $0.04 in the year-ago quarter — also surpassed Wall Street’s expectation of $0.04 per share. 

Image source: Getty Images.

Harmonic CEO Patrick Harshman said in a press release that the company’s strong financial performance in the quarter was “driven by Cable Access segment revenue growth of 98% and Video segment gross margin expansion.” 

Harshman added that the company’s “robust bookings” resulted in a record backlog and deferred revenue for the quarter. Bookings reached $205.5 million in the quarter, up 113% from $96.3 million in the year-ago quarter. 

Other highlights from the report included non-GAAP net income of $8.9 million, an increase of 98%, and adjusted EBITDA of $14.5 million — up from $9.1 million in the year-ago quarter. 

Now what

Investors are understandably happy with Harmonic’s first-quarter results, and they may have more to look forward to based on management’s full-year guidance. 

Harmonic’s leadership forecast that non-GAAP earnings per share for 2022 will be in the range of $0.34 to $0.45. Analysts’ current average estimate is for just $0.35 per share. Additionally, the company’s entire revenue guidance range of between $585 million and $625 million exceeds Wall Street’s expectation of $584.4 million. 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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