Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Cambium (CMBM) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Cambium's historical EPS growth rate is 3.4%, but projected EPS growth for this year is expected to be 96.4%, significantly surpassing the industry average of 41.4% [5]. Group 2: Asset Utilization Ratio - Cambium has an asset utilization ratio (sales-to-total-assets ratio) of 0.77, indicating that the company generates $0.77 in sales for every dollar in assets, compared to the industry average of 0.36, showcasing superior efficiency [6]. Group 3: Sales Growth - The company's sales are projected to grow by 15.6% this year, which is substantially higher than the industry average growth of 1.5% [7]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Cambium have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month, indicating a positive trend in earnings revisions [8]. Group 5: Overall Positioning - Cambium holds a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [10].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Cambium (CMBM) identified as a promising candidate due to its favorable growth metrics and strong Zacks Rank [1][2]. Group 1: Earnings Growth - Cambium's historical EPS growth rate is 3.4%, but projected EPS growth for this year is expected to be 96.4%, significantly surpassing the industry average of 41.4% [5]. Group 2: Asset Utilization Ratio - Cambium has an asset utilization ratio (sales-to-total-assets ratio) of 0.77, indicating that the company generates $0.77 in sales for every dollar in assets, compared to the industry average of 0.36, showcasing superior efficiency [6]. Group 3: Sales Growth - The company's sales are projected to grow by 17.6% this year, in stark contrast to the industry average of 1.5%, highlighting Cambium's strong sales growth potential [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Cambium, with the Zacks Consensus Estimate for the current year increasing by 2.5% over the past month, indicating favorable market sentiment [8]. Group 5: Overall Positioning - Cambium has achieved a Growth Score of A and holds a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance in the growth stock segment [10].

Core Viewpoint - Cambium (CMBM) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Cambium is expected to earn -$0.98 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 10.9% [8]. Analyst Sentiment and Market Position - Analysts have raised their earnings estimates for Cambium, with the Zacks Consensus Estimate increasing by 11.5% over the past three months [8]. - The upgrade to Zacks Rank 2 places Cambium in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks which have generated an average annual return of +25% since 1988 [7][9].

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cambium (CMBM) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.Cambium is one of 609 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. ...

Core Insights - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] - The Zacks Growth Style Score simplifies the process of finding promising growth stocks, with Cambium (CMBM) currently recommended due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of potential stock price gains [4] - Cambium's projected EPS growth for this year is 95.4%, significantly higher than the industry average of 41.4% [5] Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, indicating how efficiently a company generates sales from its assets [6] - Cambium's S/TA ratio is 0.77, outperforming the industry average of 0.35, indicating higher efficiency in asset utilization [6] Sales Growth - Sales growth is another critical factor, with Cambium expected to achieve a sales growth of 17.6% this year, compared to the industry average of 1.8% [7] Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with stock price movements, making them a valuable indicator for investors [8] - Cambium's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 1.9% over the past month [9] Conclusion - Cambium holds a Zacks Rank of 2 and a Growth Score of A, indicating its potential as an outperformer and a solid choice for growth investors [11]

Financial Performance - Total revenue for the three-month period ended September 30, 2024, was $43.7 million, an increase of 1.6% year-over-year[110] - Operating loss for the same period was $8.1 million, with a net loss of $9.7 million[110] - Revenues for the three-month period ended September 30, 2024, increased by $0.7 million, or 1.6%, to $43.7 million compared to $43.0 million for the same period in 2023, driven primarily by higher Enterprise product revenues[120] - The company reported a net loss of $9.7 million for the three-month period ended September 30, 2024, compared to a net loss of $26.2 million in the same period of 2023[120] - Revenues decreased by $48.0 million, or 26.7%, to $132.0 million for the nine-month period ended September 30, 2024, from $180.0 million for the same period in 2023[135] Revenue Breakdown - Revenues from Enterprise products are beginning to rebound, with expectations for continued improvement throughout the remainder of 2024[105] - Enterprise product revenues surged by $12.7 million, or 506.6%, from $2.5 million in 2023 to $15.2 million in 2024, with significant growth in Europe, Middle East, and Africa regions[124] - Point-to-Multi-Point product revenues decreased by $5.6 million, or 23.7%, from $23.6 million in 2023 to $18.0 million in 2024, primarily due to lower demand in Europe, Middle East, and Africa[122] - North America revenues increased by $3.5 million, or 19.9%, from $17.8 million in 2023 to $21.3 million in 2024, driven by higher demand for Wi-Fi 6 products[125] - Europe, Middle East, and Africa revenues decreased by $2.1 million, or 14.5%, from $14.3 million in 2023 to $12.2 million in 2024, mainly due to lower demand for PMP and PTP products[125] Cost Management - Total operating expenses decreased by $7.6 million, or 22.9%, from $33.1 million in 2023 to $25.5 million in 2024, with notable reductions in research and development and general and administrative expenses[128] - Research and development expenses fell by $3.9 million, or 29.5%, to $9.3 million in 2024, primarily due to lower staff-related costs and reduced engineering materials spending[129] - General and administrative expense decreased by $2.5 million, or 29.2%, to $6.1 million for the three-month period ended September 30, 2024, from $8.7 million for the same period in 2023[131] - Sales and marketing expense decreased by $5.0 million, or 15.4%, to $27.8 million for the nine-month period ended September 30, 2024, from $32.9 million for the same period in 2023[145] Macroeconomic Factors - The company is facing softened demand due to macroeconomic factors, including higher interest rates and concerns about a global economic slowdown[104] - The company continues to monitor the impact of macroeconomic factors, including inflationary pressures and potential global recession[106] Debt and Compliance - As of September 30, 2024, the company was not in compliance with its quarterly EBITDA covenant under its Amended Credit Agreement[109] - The company is seeking forbearance from Bank of America due to noncompliance with the quarterly EBITDA covenant and monthly liquidity covenant as of October 31, 2024[157] - As of September 30, 2024, the company had $22.8 million outstanding on the term loan and $45.0 million on the revolving credit facility, with effective interest rates of 8.85% and 8.66%, respectively[156] Cash Flow and Liquidity - Cash balance increased by $27.8 million to $46.5 million as of September 30, 2024, following a $45.0 million draw on the revolving credit facility[150] - Net cash used in operating activities improved from $10.7 million in 2023 to $4.3 million in 2024, despite a net loss of $45.3 million[153] - Cash used in investing activities increased to $10.8 million in 2024, primarily due to leasehold improvements for the new headquarters[154] - Net cash provided by financing activities was $43.0 million in 2024, mainly from the drawdown on the revolving credit facility[155] Impairment and Valuation - The fair value of the Company's one reporting unit was higher than its carrying value, indicating no impairment of goodwill as of September 30, 2024[165] - No impairment charges were identified in the recoverability test of long-lived assets as of September 30, 2024[167] Interest Expense - Interest expense increased from $0.6 million in 2023 to $1.4 million in 2024, reflecting higher borrowing costs[120] - Interest expense increased by $0.8 million, or 126.3%, to $1.4 million for the three-month period ended September 30, 2024, from $0.6 million for the same period in 2023[132] - Interest expense increased by $1.8 million, or 99.8%, to $3.6 million, driven by higher interest rates on the term loan and the addition of interest on the revolving credit facility[148] Market Risks - The Company has not entered into any foreign currency hedging transactions, exposing it to risks related to fluctuations in foreign currency exchange rates[169] - The Company’s revenue contracts are primarily denominated in U.S. dollars, making it vulnerable to fluctuations in foreign currency values[169] - There have been no material changes in market risk since December 31, 2023[172]

Have you evaluated the performance of Cambium's (CMBM) international operations for the quarter ending September 2024? Given the extensive global presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, ...

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $43.7 million, a decrease of 5% sequentially, with growth in the enterprise business offset by declines in P2P and PMP businesses [9][24] - Non-GAAP gross margin improved to 42.3% from 33.5% in Q2 2024, reflecting better inventory management and reduced excess and obsolete inventory charges [11][27] - Free cash flow was positive at $5.2 million, with a cash balance of $46.5 million as of September 30, 2024 [11][31] - Non-GAAP net loss for Q3 2024 was $3.8 million, an improvement from a loss of $7.1 million in Q2 2024 [29] Business Line Data and Key Metrics Changes - Enterprise business revenues increased by 34% sequentially to $15.2 million, driven by improved demand across all geographies [9][24] - PTP business revenues declined by 32% sequentially, primarily due to lower defense orders [10][25] - PMP business revenues decreased by 8% sequentially, attributed to slower adoption of 6 gigahertz deployments in North America [24] Market Data and Key Metrics Changes - EMEA revenues decreased by 9% sequentially, reflecting a decline in the PTP business for defense [26] - North America revenue increased by 3%, driven by higher enterprise revenues [26] - Asia Pacific revenue decreased by 14% sequentially, while CALA improved by 11% quarter-over-quarter [26] Company Strategy and Development Direction - The company is focusing on improving operational efficiency and optimizing its go-to-market strategy for the enterprise segment [36] - A new PMP platform, EVO, was announced, merging two major product lines to enhance performance and economic viability [37] - The enterprise business is viewed as a key growth area, with significant changes in sales strategy to target specific verticals [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future growth of defense revenues despite current budget constraints [10][40] - The company is optimistic about the enterprise segment's potential, indicating a shift in focus from traditional markets [47] - Management acknowledged ongoing price pressures in the commercial segment but remains committed to improving margins [44] Other Important Information - The company is seeking forbearance from the bank regarding covenant breaches and is in negotiations to address noncompliance issues [32][46] - Total devices under cnMaestro Cloud Management increased approximately 3% from Q2 2024 and over 14% year-over-year [22] Q&A Session Summary Question: Expectations for improvement in the defense market - Management indicated that while defense business has been delayed, it has not been lost to competitors, but there is uncertainty about future government spending [45] Question: Insights on gross margin improvements - Management noted that gross margins are on an upward trend due to better inventory management and expect to approach historical levels in the high 40s to around 50% [42][43] Question: Future focus on enterprise business - Management confirmed that the enterprise segment is seen as the future growth area for the company, with efforts to maintain and potentially grow market share in the P2P market [47]

Cambium Networks Corporation (CMBM) reported mixed third-quarter 2024 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The leading wireless solutions provider recorded year-over-year marginal revenue growth due to strength in the Enterprise segment.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Lower Point-to-Point revenues due to weakness in defense vertical affected the top line. Healthy growth in free cash flow was a positive. ...

For the quarter ended September 2024, Cambium (CMBM) reported revenue of $43.73 million, up 1.6% over the same period last year. EPS came in at -$0.14, compared to -$0.44 in the year-ago quarter.The reported revenue represents a surprise of -3.47% over the Zacks Consensus Estimate of $45.3 million. With the consensus EPS estimate being -$0.17, the EPS surprise was +17.65%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...