Core Insights - Anterix is collaborating with EPRI, George Mason University, Southern Company, and Virginia Tech on a project named STAR TREC, aimed at reducing cybersecurity risks to critical energy infrastructure through the development of secure telecommunications architectures [1][2] - The project has received over $22.2 million in funding from the U.S. Department of Energy's Office of Cybersecurity, Energy Security, and Emergency Response [1] - Anterix will focus on researching and demonstrating zero-trust architectures for secure broadband communications networks essential for integrating distributed energy resources and microgrids [2] Company Involvement - Anterix's expertise in utility-focused private wireless broadband will be instrumental in driving the STAR TREC project [1] - The company emphasizes its commitment to enhancing grid security and innovation through collaborations with utilities and other entities [2] - Anterix's Utility Strategic Advisory Board has contributed insights that are reflected in EPRI's white paper on the role of telecommunications in advancing clean energy [2] Industry Context - The increasing convergence of information technology, operational technology, and telecommunications infrastructure in power companies highlights the critical need for cybersecurity in energy systems [2] - EPRI aims to advance cutting-edge technologies and solutions to mitigate cyber risks in energy infrastructure through this collaboration [2]

Leading Research Laboratories and Technology Companies Are DevelopingSolutions for Cybersecurity, Sustainability, and Enhanced Grid Communications WOODLAND PARK, N.J., March 14, 2024 /PRNewswire/ -- Anterix (NASDAQ: ATEX) today announced its participation in a broad alliance among energy industry leaders that are supporting the U.S. Department of Energy's (DOE's) national laboratories' efforts to help modernize the energy grid. Anterix is joining Idaho National Laboratories, the National Renewable Energy La ...

Core Viewpoint - Anterix (ATEX) shows significant upside potential with a mean price target of $59.33, indicating a 64.5% increase from its current price of $36.07, supported by positive earnings estimate revisions and analyst agreement [1][5]. Group 1: Price Targets and Analyst Consensus - The mean price target for ATEX is $59.33, suggesting a 64.5% upside potential, with the lowest estimate at $43 (19.2% increase) and the highest at $75 (107.9% increase) [1]. - Analysts have shown strong agreement in revising earnings estimates higher, with two estimates moving up in the last 30 days and no negative revisions, leading to a 66.7% increase in the Zacks Consensus Estimate [5]. - A low standard deviation of price targets indicates a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [4]. Group 2: Analyst Behavior and Market Dynamics - Analysts often set overly optimistic price targets due to business incentives, which can mislead investors [3]. - Despite skepticism around price targets, the direction implied by them can still provide useful guidance for potential stock movements [6]. - The Zacks Rank 2 (Buy) for ATEX places it in the top 20% of over 4,000 ranked stocks, indicating strong potential for near-term upside based on earnings estimates [6].

Company Overview - Anterix partners with leading utilities and technology companies to leverage 900 MHz broadband for modernized grid solutions [2] - The company leads an ecosystem of over 100 members, providing utility-first solutions to address current challenges faced by utilities [2] - Anterix holds the largest licensed spectrum in the 900 MHz band across the contiguous United States, Alaska, Hawaii, and Puerto Rico, positioning itself uniquely for private wireless broadband solutions [2] Upcoming Events - Anterix Chief Financial Officer Tim Gray will present at Morgan Stanley's Technology, Media & Telecom Conference 2024 on March 5, 2024, at 2:05 p.m. PST [1] - The presentation will be available via live webcast on the Anterix Investor Relations event website [1] - Anterix will also be available for meetings with participating investors throughout the day of the conference [1]

Shares of Anterix (ATEX) have gained 33% over the past four weeks to close the last trading session at $39.85, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $59.33 indicates a potential upside of 48.9%.The average comprises three short-term price targets ranging from a low of $43 to a high of $75, with a standard deviation of $16.01. While the lowest estimate indicates an incr ...

Financial Data and Key Metrics Changes - Anterix reported a total of $190 million received from contracts out of a total of $270 million, with $80 million remaining to be received [29] - No additional cash receipts are scheduled from contracts for the current fiscal year, with approximately $15 million contracted for FY 2025 and the remainder expected between FY 2026 and FY 2028 [29] Business Line Data and Key Metrics Changes - The company welcomed its sixth utility customer, Tampa Electric, and achieved 3GPP standards approval, which provides a clear path to 5G for 900 megahertz spectrum users [5][9] - The demonstrated intent scorecard showed that four utilities crossed the threshold since the last report, representing approximately $200 million in additional potential contracts, bringing the total to 18 utilities in the highest category, representing about $1.1 billion in potential contract proceeds [7][8] Market Data and Key Metrics Changes - Anterix is actively participating in key industry events such as DISTRIBUTECH, NARUC, and Mobile World Congress to showcase the benefits of 900 megahertz private wireless broadband and engage with stakeholders [10][11][12] - The company is also supporting multiple filings to the US Department of Energy for funding under the bipartisan infrastructure law, aiming to modernize the electric grid and improve grid resilience [13] Company Strategy and Development Direction - Anterix aims to establish 900 megahertz Utility Broadband as the standard for a secure and resilient energy future, focusing on long-term growth and capturing additional opportunities [16] - The company is building industry-wide support for utility private wireless broadband networks and engaging with policymakers to address challenges such as renewable energy integration and cybersecurity [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing movement towards private wireless broadband networks and highlighted the importance of collaboration with utilities and stakeholders [5][16] - The company is focused on advancing contracts and believes its sector-specific strategy positions it well for long-term growth [16] Other Important Information - Tom Kuhn, a notable leader in the electric power industry, was welcomed as Vice Chairman of the Board, bringing extensive experience and policy expertise [14][15] Q&A Session Summary Question: What utilities in the highest level of demonstrating intent are pursuing rate cases involving spectrum and wireless investments? - Management explained that utilities typically build a business case internally before rolling it into a rate case, which varies by state regulations [19][20] Question: Is there traction in helping utilities access supplemental funding from the government? - Management confirmed strong interest in funding opportunities, assisting utilities with applications, and noted that funding can free up capital for private LTE initiatives [23][24][27] Question: What are the expected milestone cash payment timelines? - Management indicated that $190 million has been received from contracts, with no additional cash receipts scheduled for the current fiscal year, and revenue recognition for LCRA and Tego expected within the next 12 months [28][29] Question: Updates on DISTRIBUTECH and buyback expectations? - Management provided insights into the focus areas for DISTRIBUTECH, including security and resiliency, and noted that buyback activity would continue actively within the announced program [31][37]

Anterix (ATEX) came out with a quarterly loss of $0.55 per share versus the Zacks Consensus Estimate of a loss of $0.61. This compares to loss of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.84%. A quarter ago, it was expected that this wireless communications company would post a loss of $0.64 per share when it actually produced a loss of $0.55, delivering a surprise of 14.06%.Over the last four quarters, the compa ...

Financial Performance - Spectrum revenues for the nine months ended December 31, 2023, were $2,931,000, up from $1,311,000 for the same period in 2022, representing a year-over-year increase of approximately 123.5%[16] - Net loss for the three months ended December 31, 2023, was $(8,020,000), compared to a net loss of $(31,859,000) for the same period in 2022, indicating a reduction in losses by approximately 74.8%[16] - The company reported a net income of $283,000 for the nine months ended December 31, 2023, a significant improvement compared to a net loss of $31.86 million for the same period in 2022[25] - Total spectrum revenue for the three months ended December 31, 2023, was $1,271,000, compared to $578,000 for the same period in 2022, representing a 120% increase[42] - For the nine months ended December 31, 2023, spectrum revenues rose by $1.6 million, or 124%, to $2.9 million from $1.3 million in the prior year[106] Assets and Liabilities - Total current assets increased to $77,849,000 as of December 31, 2023, compared to $59,459,000 on March 31, 2023, reflecting a growth of approximately 30.9%[14] - Cash and cash equivalents rose to $62,033,000 as of December 31, 2023, compared to $43,182,000 on March 31, 2023, marking an increase of about 43.7%[14] - Total liabilities increased to $148,616,000 as of December 31, 2023, from $98,765,000 on March 31, 2023, reflecting a rise of approximately 50.6%[14] - Deferred revenue increased to $100,897,000 as of December 31, 2023, from $57,990,000 on March 31, 2023, representing an increase of approximately 73.7%[14] - The company’s accumulated deficit reached $(356,792,000) as of December 31, 2023, compared to $(349,149,000) on September 30, 2023, indicating a continued increase in accumulated losses[19] Cash Flow - The company reported a net cash provided by operating activities of $35.85 million for the nine months ended December 31, 2023, compared to a net cash used of $18.68 million in the same period of 2022[25] - Net cash provided by operating activities was approximately $35.9 million for the nine months ended December 31, 2023, compared to a net cash used of $18.7 million for the same period in 2022[124] - Net cash provided by investing activities was $10.4 million for the nine months ended December 31, 2023, compared to net cash used of $20.6 million for the same period in 2022[126] - Net cash used in financing activities was $19.8 million for the nine months ended December 31, 2023, compared to $8.8 million for the same period in 2022[127] Expenses - General and administrative expenses for the nine months ended December 31, 2023, were $34,830,000, slightly down from $34,871,000 for the same period in 2022, showing a decrease of about 0.1%[16] - Non-cash compensation expense attributable to stock awards was $12.02 million for the nine months ended December 31, 2023, compared to $13.41 million for the same period in 2022[25] - Operating expenses totaled $14.1 million for the three months ended December 31, 2023, a decrease of $0.7 million, or -5%, from $14.8 million in the same period of 2022[107] - Product development expenses increased by $0.3 million, or 32%, to $1.2 million for the three months ended December 31, 2023, compared to $0.9 million for the same period in 2022[110] Agreements and Contracts - The company entered into a 20-year agreement with Tampa Electric Company (TECO) for the use of its 900 MHz Broadband Spectrum, with scheduled prepayments totaling $34.5 million, of which $6.9 million was received in December 2023[31] - An agreement with Lower Colorado River Authority (LCRA) was established for the sale of 900 MHz Broadband Spectrum for total payments of $30 million, with an initial payment of $15 million received in December 2023[32] - The company recognized revenue of approximately $0.7 million and $1.1 million for the three and nine months ended December 31, 2023, respectively, from the Xcel Energy Agreement, which totals $80 million[34] - Xcel Energy Agreement guarantees the delivery of 900 MHz Broadband Spectrum for 20 years, with $50.3 million recorded in deferred revenue as of December 31, 2023[130] Share Repurchase and Equity - A new share repurchase program was authorized, permitting the repurchase of up to $250 million of common stock by September 21, 2026[36] - The Company has a total future minimum lease payment obligation of $6.4 million under existing non-cancelable leases[71] - The Company repurchased a total of $8.0 million of its common stock under the 2023 Share Repurchase Program during fiscal year 2024[76] - The company repurchased and retired 230,000 shares in 2023 at an average price of $34.77 per share, totaling $7,971,000, compared to 106,000 shares at an average price of $33.11 per share for $3,498,000 in 2022[79] Gains and Losses - The company reported a gain on disposal of intangible assets of $(33,035,000) for the nine months ended December 31, 2023, compared to $(9,329,000) for the same period in 2022, indicating a significant increase in losses from asset disposals[16] - The Company recorded a gain on disposal of intangible assets of $33.04 million for the nine months ended December 31, 2023[25] - The company recorded a non-monetary gain on disposal of intangible assets of $13.7 million for the three months ended December 31, 2023, due to the exchange of narrowband licenses for broadband licenses[112] - A cumulative gain on sale of intangible assets of $7.4 million was recorded for the nine months ended December 31, 2023, related to the transfer of broadband licenses to SDG&E[114] Tax and Regulatory - The Company recorded a total tax expense of $1.7 million for the nine months ended December 31, 2023, compared to $0.6 million for the same period in 2022[72] - Income tax expense increased by $1.128 million, or 537%, to $1.338 million for the three months ended December 31, 2023, compared to $210 thousand for the same period in 2022[118] Market and Economic Conditions - The company is closely monitoring macroeconomic conditions, including inflation, which may adversely affect its commercialization efforts and financial condition[89] - Inflationary factors may adversely affect operating results, with increased operating expenses noted due to recent inflation[139]

Industry Overview - The Zacks Communication - Infrastructure industry is positioned to benefit from strong demand trends and a growing user inclination towards digital innovations, despite facing challenges such as high capital expenditures, margin erosion, and geopolitical conflicts [1][4] - Key players like Anterix Inc. (ATEX), CommScope Holding Company, Inc. (COMM), and Bandwidth Inc. (BAND) are expected to gain from the increasing demand for scalable infrastructure due to the proliferation of IoT, cloud transitions, and accelerated 5G rollouts [1] Industry Description - The industry provides various infrastructure solutions for communication networks, including high-speed network access solutions and a range of products such as optical fiber, structured cable solutions, and wireless network backhaul products [2] Future Trends - The industry is experiencing a seamless transition to cloud services, driven by the growth in bandwidth-intensive applications and the deployment of 5G technology, leading to significant investments in LTE, broadband, and fiber [3] - Companies are transforming from traditional telecommunications firms to technology-driven entities to meet the rising demand for flexible data and communication solutions [3] Profitability Challenges - The industry is currently facing profitability challenges due to a shortage of chips, high raw material prices, and geopolitical tensions affecting business credibility and operations [4] - Ongoing conflicts, such as the Israel-Hamas conflict and the Russia-Ukraine war, have further impacted profitability and operational risks [4] Network Convergence - Operators are moving towards converged network structures that integrate voice, video, and data communications, which is expected to reduce service delivery costs and enhance competition in broadband services [5] Industry Performance - The Zacks Communication - Infrastructure industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, declining 58.8% over the past year [8] - The industry's current valuation, based on trailing 12-month EV/EBITDA, is 3.29X, significantly lower than the S&P 500's 14.40X and the sector's 14.14X [9] Key Stocks to Watch - **Anterix Inc. (ATEX)**: Holds the largest licensed spectrum in the 900 MHz band and has seen a 36.5% earnings surprise on average over the last four quarters, with a 35.5% upward revision in current-year earnings estimates [10] - **CommScope Holding Company, Inc. (COMM)**: Focused on core operations after divesting its Home Networks business, with a long-term earnings growth expectation of 17.2% [11] - **Bandwidth Inc. (BAND)**: A Communications Platform-as-a-Service provider with a 175.3% average earnings surprise over the last four quarters and upward revisions in earnings estimates for the current and next year [14]

Anterix (ATEX) has been on a downward spiral lately with significant selling pressure. After declining 13.8% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock i ...