What to Expect from Harmonic's Earnings

Harmonic HLIT is preparing to release its quarterly earnings on Monday, 2025-04-28. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Harmonic to report an earnings per share (EPS) of $0.05.

Anticipation surrounds Harmonic's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.08, leading to a 15.29% drop in the share price the following trading session.

Here's a look at Harmonic's past performance and the resulting price change:

Market Performance of Harmonic's Stock

Shares of Harmonic were trading at $9.07 as of April 24. Over the last 52-week period, shares are down 2.18%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Insights Shared by Analysts on Harmonic

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Harmonic.

Analysts have given Harmonic a total of 5 ratings, with the consensus rating being Buy. The average one-year price target is $12.9, indicating a potential 42.23% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Digi Intl, Viasat and Netgear, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Digi Intl, with an average 1-year price target of $35.5, suggesting a potential 291.4% upside.
• Analysts currently favor an Neutral trajectory for Viasat, with an average 1-year price target of $13.67, suggesting a potential 50.72% upside.
• Analysts currently favor an Outperform trajectory for Netgear, with an average 1-year price target of $29.0, suggesting a potential 219.74% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Digi Intl, Viasat and Netgear, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Harmonic is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth and gross profit, but at the top for return on equity.

Unveiling the Story Behind Harmonic

Harmonic Inc engaged in broadband access solutions that enable broadband operators to more efficiently and effectively deploy high-speed internet for data, voice, and video services for their customers and versatile and high-performance video delivery software, products, system solutions and services that enable its customers to efficiently create, prepare, store, playout and deliver a full range of high-quality broadcast and streaming video services to consumer devices, including televisions, personal computers, laptops, tablets, and smartphones. It has two segments, Broadband which provides broadband access solutions and related services, and Others; and Video business provides video processing and production and playout solutions and services, and Others.

Financial Milestones: Harmonic's Journey

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Harmonic's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 32.96% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Harmonic's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.16%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.53%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Harmonic's ROA stands out, surpassing industry averages. With an impressive ROA of 4.9%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.32.

To track all earnings releases for Harmonic visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.