Extreme Networks (EXTR) to Report Q4 Earnings: What's in Store?
Extreme Networks EXTR is slated to report fiscal fourth-quarter 2023 results on Aug 2.
The company’s fiscal fourth-quarter 2023 revenues are expected to be between $340 million and $350 million. Earnings are expected in the range of 16-22 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $344.85 million, suggesting an increase of 23.96% from the year-ago quarter’s reported number.
The consensus mark for fiscal fourth-quarter earnings has remained unchanged at 31 cents per share in the past 30 days, suggesting a year-over-year increase of 106.67%.
Extreme Networks, Inc. Price and EPS Surprise
Extreme Networks, Inc. price-eps-surprise | Extreme Networks, Inc. Quote
Extreme Networks beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and meeting in the remaining one, the average surprise being 8.79%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Extreme Networks’ fiscal fourth-quarter 2023 performance is likely to have benefited from significant demand in its one network and one cloud solutions. This reflects on a strong execution by its field teams, strong partner base, and a competitive differentiated product portfolio.
The company benefits from an expanding clientele that leverage Extreme’s technology to streamline operations and drive business transformation.
Companies in different verticals have deployed EXTR’s cloud managed network and Wi-Fi 6E ready networks to drive energy savings, improve network performance and fulfil operational needs. These factors are likely to have driven its fiscal fourth-quarter top line.
Strength in its cloud subscription revenues has been noteworthy. Partnerships with Comcast and Verizon are expected to have expanded its footprint in the core market verticals in the quarter to be reported.
An improving supply chain environment and declining lead times are expected to have contributed to Extreme Network’s performance.
Continuous reduction in expedite fees and shipping costs combined with the impact of its pricing actions is expected to have improved Extreme Networks’ margin performance in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Extreme Networks currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Perion Network PERI has an Earnings ESP of +5.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PERI’s shares have gained 39.4% year-to-date. Perion Network is set to report its second-quarter 2023 results on Aug 2.
Fair Isaac FICO has an Earnings ESP of +3.12% and a Zacks Rank of 3 at present.
Fair Isaac’s shares have returned 37.9% year to date. FICO is set to report its third-quarter fiscal 2023 results on Aug 2.
Etsy ETSY has an Earnings ESP of +2.82% and a Zacks Rank #3.
Etsy’s shares have declined 16.8% year to date. ETSY is set to report second-quarter 2023 results on Aug 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
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