From Nasdaq: 2025-02-14 15:00:00

Ceragon Networks Ltd. (CRNT) reported Q4 2024 adjusted EPS of 9 cents, missing estimates by 10%, with a 125% YoY increase. Revenues reached $106.9 million, up 18.3% YoY, exceeding estimates by 2.8%. The company is focusing on millimeter-wave products, private networks, and recurring revenues to drive growth.

Ceragon Networks introduced innovative millimeter-wave products like the IP-50CX and IP-50EX, capitalizing on the demand for high-performance wireless tech. The company is also promoting its first Neptune-based product, the IP-100E, to deliver 25Gps capacity. Future launches include a new split-mount product to be commercially available in H1 2025.

Ceragon Networks secured $7 million in annual recurring revenue from managed services. Its acquisitions of Siklu and End 2 End Technologies, LLC aim to boost private network business. The company’s strong position in India, with revenues of $55.6 million in Q4, reflects growth opportunities in the telecommunications market as it upgrades to 4G and 5G infrastructure.

CRNT’s non-GAAP gross profit increased 15.5% YoY, with a gross margin of 34.3% in Q4. The company projects 2025 revenues of $390-430 million, with a minimum non-GAAP operating margin of 10%. Challenges include a slowdown in the CSP business, global macro weakness, and competition from Chinese players.

Ceragon Networks stock has declined 24.4% in the past month, underperforming the industry. Analysts have revised down earnings estimates for the company. CRNT’s stock is trading at a premium compared to industry peers. While growth initiatives hold promise, challenges could impact stock performance, urging investors to stay cautious. The stock currently holds a Zacks Rank #3 (Hold).



Read more at Nasdaq: Should Ceragon Stock be in Your Portfolio Post Q4 Earnings?