Ceragon Networks (CRNT) shares soared 15.9% in the last trading session to close at $5.48. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10% gain over the past four weeks.
The increase in share price can attributed to the strong demand for its solutions which led to a 17.7% increase in revenues in the last reported quarter. Ceragon is witnessing strong funnel of opportunities, particularly in the private networks' vertical in the North American markets. Healthy demand for its solutions in India is another plus.
Improving top line performance is positively impacting profitability with the company registering non-GAAP operating income was $15.8 million in the last reported quarter. Synergies from acquisition of Siklu is another tailwind.
For 2024, CRNT expects revenues between $390 million and $400 million, representing growth of 12% to 15% year over year.
This provider of wireless backhaul services is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +175%. Revenues are expected to be $103.98 million, up 15.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Ceragon, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CRNT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ceragon belongs to the Zacks Wireless Non-US industry. Another stock from the same industry, America Movil AMX, closed the last trading session 1.8% higher at $14.17. Over the past month, AMX has returned -6.5%.
Amer Movil's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. Compared to the company's year-ago EPS, this represents a change of +15.2%. Amer Movil currently boasts a Zacks Rank of #5 (Strong Sell).
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Ceragon Networks Ltd. (CRNT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
