William Blair reiterated their buy rating on shares of Sonus Networks, Inc. (NASDAQ:SONS) in a report issued on Friday morning.

“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.

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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.

Analyst Recommendations for Sonus Networks (NASDAQ:SONS)

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