Why Is Network Equipment Provider Ubiquiti Stock Diving Premarket Friday?

Ubiquiti Inc. UI shares are trading lower premarket Friday after the company reported fourth-quarter results.

Revenues grew 3.3% Y/Y to $507.5 million, missing the consensus of $511.62 million. Revenue growth was driven by increased revenue from the Enterprise Technology platform, while revenue from the Service Provider Technology platform declined Y/Y.

In the quarter, GAAP gross profit stood at $204.1 million, with a gross margin of 40.2% vs. 41.4% in the same quarter a year ago.

The drop in gross profit margin was mainly owing to increased shipping costs and higher charges for excess and obsolete inventory.

Adjusted EPS of $1.74 surpassed the street view of $1.73.

As of June 30, 2024, the company had cash and cash equivalents of $126.3 million.

Dividend: The Board declared a dividend per share of $0.60, payable on September 9 to shareholders of record as of September 3. The company intends to pay regular quarterly cash dividends of at least $0.60 per share during each quarter of FY24.

Price Action: UI shares are down 7.59% at $163.22 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.