Ruckus Wireless (RKUS) Attributes Revenue Miss to E-Rate Related Deal; Needham & Company Reiterates Buy

Needham & Company maintained a Buy rating on Ruckus Wireless (NYSE: RKUS), and cut the price target to $11.00 (from $14.00), following the company's 4Q earnings report. Results of $100.1MM missed consensus of $101.9MM, while NG EPS of $0.13 met consensus. Management attributed the miss to an E-Rate related deal that got delayed late in the quarter.

Analyst Richard Valera commented, "RKUS reported 4Q15 results that missed modestly on the top line but met on the bottom line. While not bad results considering the macro backdrop, 4Q15 marks the 4th out the last 6 Qs RKUS will have missed the consensus top line. While clearly disappointing, we believe the precipitous recent slide in the shares already largely baked in less-than-perfect results. That said, with a solid position in ERate, a strong position in Wave 2 and likely continued strength in service provider, we see RKUS as positioned to deliver mid-teens revenue growth and better earning growth in '16. We maintain our Buy while reducing our PT to $11, or ~15x our 'C17 ex-cash estimates."

For an analyst ratings summary and ratings history on Ruckus Wireless click here. For more ratings news on Ruckus Wireless click here.

Shares of Ruckus Wireless closed at $7.48 yesterday.

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