Sonus Networks’ (SONS) “Buy” Rating Reiterated at William Blair
“We believe third-quarter revenue and margin outperformance is being driven by strength at a large tier-1 North American carrier —believed to be Verizon (VZ $48.35; Market Perform)—for a software-based virtualized SBC (vSBC) rollout used in a major VoL TE migration (and a competitive displacement) announced last quarter . Non-GAAP gross margin registered 75% this quarter , which came in well above our estimate of 71%, leading to EPS outperformance. Verizon showed up as a 16% customer (at $12 million) in the quarter . In addition, AT&T (T $35.83; Market Perform) registered 11% of revenue ($8.2 million) during the quarter , after being missing in action in the first quarter of the year and contributing 12% of revenue ($6.7 million) in the second quarter.”,” the firm’s analyst wrote.
A number of other equities research analysts have also commented on SONS. B. Riley reiterated a neutral rating and issued a $7.75 target price on shares of Sonus Networks in a research report on Tuesday, June 27th. Northland Securities set a $10.00 target price on Sonus Networks and gave the company a buy rating in a research report on Tuesday, July 4th. BidaskClub lowered Sonus Networks from a hold rating to a sell rating in a research report on Tuesday, July 25th. Cowen and Company reiterated a sell rating and issued a $5.00 target price on shares of Sonus Networks in a research report on Friday, August 4th. Finally, DA Davidson upgraded Sonus Networks from a neutral rating to a buy rating and set a $8.50 target price on the stock in a research report on Monday, August 7th. Four research analysts have rated the stock with a sell rating, two have assigned a hold rating and five have assigned a buy rating to the company. Sonus Networks currently has a consensus rating of Hold and an average price target of $8.57.
Shares of Sonus Networks (SONS) opened at 7.79 on Friday. The stock’s market cap is $387.05 million. Sonus Networks has a one year low of $5.51 and a one year high of $8.64. The stock’s 50 day moving average is $7.36 and its 200-day moving average is $7.30.
Sonus Networks (NASDAQ:SONS) last issued its earnings results on Thursday, August 3rd. The communications equipment provider reported ($0.02) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.09) by $0.07. The firm had revenue of $55.70 million for the quarter, compared to analyst estimates of $53.93 million. Sonus Networks had a negative return on equity of 6.18% and a negative net margin of 12.15%. Sonus Networks’s revenue for the quarter was down 8.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.08 earnings per share. On average, equities analysts forecast that Sonus Networks will post $0.25 EPS for the current year.
Institutional investors have recently added to or reduced their stakes in the business. Capital Investment Advisors LLC purchased a new stake in Sonus Networks in the 2nd quarter worth approximately $106,000. PEAK6 Investments L.P. boosted its position in Sonus Networks by 69.1% in the 1st quarter. PEAK6 Investments L.P. now owns 18,265 shares of the communications equipment provider’s stock worth $120,000 after purchasing an additional 7,465 shares in the last quarter. Federated Investors Inc. PA boosted its position in Sonus Networks by 26.1% in the 2nd quarter. Federated Investors Inc. PA now owns 19,960 shares of the communications equipment provider’s stock worth $149,000 after purchasing an additional 4,133 shares in the last quarter. Voya Investment Management LLC boosted its position in Sonus Networks by 18.9% in the 2nd quarter. Voya Investment Management LLC now owns 25,370 shares of the communications equipment provider’s stock worth $189,000 after purchasing an additional 4,033 shares in the last quarter. Finally, American International Group Inc. boosted its position in Sonus Networks by 7.0% in the 1st quarter. American International Group Inc. now owns 29,368 shares of the communications equipment provider’s stock worth $194,000 after purchasing an additional 1,930 shares in the last quarter. Institutional investors and hedge funds own 68.64% of the company’s stock.
About Sonus Networks
Sonus Networks, Inc (Sonus) is a provider of networked solutions for communications service providers and enterprises to help them secure and unify their real-time communications infrastructures. The Company helps communications service providers and enterprises hold the session initiation protocol (SIP) and fourth generation (4G)/long term evolution (LTE)-based solutions, including voice over Internet protocol (VoIP), voice over wireless fidelity (VoWiFi), video and unified communications (UC) by securing and enabling Internet Protocol (IP) networks.
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