Ceragon Networks Stock Soars On Q2 Performance, Raises Full-Year Outlook

Ceragon Networks Ltd (NASDAQ: CRNT) reported a second-quarter FY23 revenue increase of 21.9% year-on-year to $86.2 million, beating the consensus of $78.4 million. Adjusted EPS of $0.05 beat the consensus of $0.01.

Ceragon saw strong bookings in India and North America in Q2, which bolstered quarterly performance.

Non-GAAP operating income in Q2 was $7.4 million, compared with an operating income of $0.4 million a year ago.

Gross margin was 35.2%, compared with a gross margin of 30.3% in Q2 2022 and 33.8% in Q1 2023.

The company held $24.5 million in cash and equivalents.

Doron Arazi, CEO, commented: "Ceragon delivered strong double digit year-over-year revenue growth, margin expansion and solid profitability in the second quarter. During the quarter, we again recorded bookings that exceeded our revenue levels which improved our visibility into the third quarter and strengthened our confidence for the full year."

FY23 Outlook: Ceragon Networks raised FY23 revenue guidance to $334 million - $348 million (prior $325 million - $345 million) versus the consensus of $334.79 million. The company expects full-year profitability vs $0.11 consensus.

The company's revenue target for FY27 is approximately $500 million.

Price Action: CRNT shares traded higher by 7.43% at $2.17 on the last check Tuesday.