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Extreme Networks, Inc. reports results for the quarter ended September 30 - Earnings Summary
Extreme Networks reported quarterly adjusted earnings of 33 cents per share for the quarter ended September 30, beating the 28-cent analyst mean. Revenue rose 9.9% to $341.09 million, topping the $336.72 million analysts expected. Reported EPS was 12 cents and net income was $15.98 million.
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What happened
Extreme Networks reported quarterly adjusted earnings of 33 cents per share for the quarter ended September 30, beating the 28-cent analyst mean. Revenue rose 9.9% to $341.09 million, topping the $336.72 million analysts expected. Reported EPS was 12 cents and net income was $15.98 million.
Confirmed
Global impact / market context
Earnings beat the average analyst estimate, which can support investor confidence in the networking company. Higher revenue also suggests demand held up. Because analyst ratings average buy and the price target sits above the last close, results may reinforce positive positioning in the stock.
Analyst inference
The company operates in communications and networking, a peer group Wall Street also rates buy on average. Analysts had recently trimmed earnings estimates modestly, so the beat contrasts with cautious expectations. Shares had already gained 11.2% this quarter before these results.
Analyst inference
What to watch
- Analyst ratings show 7 strong buy or buy, 1 hold and no sell ratings, while the median 12-month price target is $34.00, about 29.9% above the last closing price of $23.85. Confirmed
- Watch whether analysts revise earnings estimates after the beat, since no estimate revisions occurred in the last 30 days and the mean estimate had fallen about 1.1% over three months. Proposed
- Track whether revenue growth of 9.9% continues, because sustained sales gains would support profit and justify the buy ratings and price target relative to the current share price. Analyst inference
Evidence
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