Needham & Company Maintains a 'Buy' on Aviat Networks (AVNW); Surprise CEO Change; Preliminary 4Q View
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Price: $22.15 --0%
Rating Summary:
8 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
Rating Summary:
8 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
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Needham & Company maintains a 'Buy' on Aviat Networks (NASDAQ: AVNW), PT $5.50.
Needham analyst says, "Yesterday, Aviat delivered the mixed news that: 1) its CEO Chuck Kissner was surprisingly resigning, to be replaced by the company’s former VP of Sales, but that 2) its 4QF11 revenue, bookings and cash management were all as good, or better, than expected. Investors viewed the overall news positively, bidding up the shares 6% in a down tape. While we are encouraged by the positive demand/cash commentary, our near-term enthusiasm is tempered by what we think could be a disappointing near-term GM outlook due to increased pricing pressure. As such we maintain our Buy rating for medium term investors but would not necessarily be aggressive on the shares until near-term GM expectations are moderated, possibly on the 4QF11 earnings call."
"We are adjusting our model. We inch up our 4QF11 estimate to $115MM/$0.03 PF EPS from $113MM/$0.02. While we leave our revenue for F12 unchanged at $482MM, we trim our EPS to $0.19 from $0.24 as a result of lower GM assumptions, which we assume for now will more than offset lower op-ex. For F13, both revenue and EPS are unchanged at $511MM/$0.41 as we assume that lower op-ex offsets our trimmed GM assumptions."
For more ratings news on Aviat Networks click here and for the rating history of Aviat Networks click here.
Shares of Aviat Networks closed at $4.07 yesterday.
Needham analyst says, "Yesterday, Aviat delivered the mixed news that: 1) its CEO Chuck Kissner was surprisingly resigning, to be replaced by the company’s former VP of Sales, but that 2) its 4QF11 revenue, bookings and cash management were all as good, or better, than expected. Investors viewed the overall news positively, bidding up the shares 6% in a down tape. While we are encouraged by the positive demand/cash commentary, our near-term enthusiasm is tempered by what we think could be a disappointing near-term GM outlook due to increased pricing pressure. As such we maintain our Buy rating for medium term investors but would not necessarily be aggressive on the shares until near-term GM expectations are moderated, possibly on the 4QF11 earnings call."
"We are adjusting our model. We inch up our 4QF11 estimate to $115MM/$0.03 PF EPS from $113MM/$0.02. While we leave our revenue for F12 unchanged at $482MM, we trim our EPS to $0.19 from $0.24 as a result of lower GM assumptions, which we assume for now will more than offset lower op-ex. For F13, both revenue and EPS are unchanged at $511MM/$0.41 as we assume that lower op-ex offsets our trimmed GM assumptions."
For more ratings news on Aviat Networks click here and for the rating history of Aviat Networks click here.
Shares of Aviat Networks closed at $4.07 yesterday.
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