Harmonic Inc Up 7.81% To $10.49 After Earnings Miss

Harmonic Inc (HLIT) missed earnings estimates for Q3 2023 this afternoon.

reported that it broke-even during the quarter. The firm's earnings are down 100% since reporting $0.13 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Harmonic Inc revenue came in at a consensus of $132.9 million. Third-Quarter revenues missed estimates for $127.2 million by $5.7 million (4%). The company achieved negative 18% growth year-over-year compared to the firm's revenue of $155.7 million from the year-ago quarter. The higher earnings growth relative to revenue signals Harmonic Inc has improved its profit margin.

The stock is up 7.81% to $10.49 after the report.

Harmonic Inc's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Harmonic Inc a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 26. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Harmonic Inc designs and manufactures video infrastructure products and system solutions to deliver video and broadband services to consumer devices. The firm operates in two segments: Video, which sells video processing, production, and playout solutions to cable operators and satellite and telecommunications providers; and Cable Access, which sells cable edge solutions to cable operators. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, and Africa, as well as the Asia Pacific region.