Harmonic (NASDAQ:HLIT) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Harmonic (NASDAQ:HLIT) announced its earnings results on Monday. The communications equipment provider reported $0.38 EPS for the quarter, beating the consensus estimate of $0.37 by $0.01, Zacks reports. Harmonic had a return on equity of 7.56% and a net margin of 13.62%. Harmonic updated its FY 2025 guidance to 0.430-0.680 EPS and its Q1 2025 guidance to 0.020-0.080 EPS.

Harmonic Stock Down 15.3 %

HLIT opened at $9.42 on Wednesday. Harmonic has a fifty-two week low of $8.42 and a fifty-two week high of $15.46. The business has a 50-day moving average of $12.54 and a 200-day moving average of $13.11. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.08 and a quick ratio of 1.62. The company has a market capitalization of $1.10 billion, a PE ratio of 12.90 and a beta of 0.89.

Analyst Upgrades and Downgrades

HLIT has been the subject of several analyst reports. Rosenblatt Securities reduced their target price on Harmonic from $16.00 to $12.00 and set a “buy” rating for the company in a report on Tuesday. Jefferies Financial Group downgraded Harmonic from a “buy” rating to a “hold” rating and reduced their target price for the company from $14.00 to $12.50 in a report on Tuesday, October 29th. Northland Securities reduced their target price on Harmonic from $14.00 to $12.50 and set an “outperform” rating for the company in a report on Tuesday. Needham & Company LLC reduced their target price on Harmonic from $18.00 to $14.00 and set a “buy” rating for the company in a report on Tuesday. Finally, Barclays reduced their price objective on Harmonic from $14.00 to $10.00 and set an “equal weight” rating for the company in a research note on Tuesday. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, Harmonic currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.50.

Harmonic announced that its board has authorized a share buyback program on Monday, February 10th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the communications equipment provider to repurchase up to 15.4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Harmonic Company Profile

Harmonic Inc, together with its subsidiaries, provides broadband solutions worldwide. The company operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers.