Core Insights - Ceragon Networks (CRNT) reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, but showing an improvement from $0.04 per share a year ago, resulting in an earnings surprise of -10% [1] - The company posted revenues of $106.93 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.84% and up from $90.36 million year-over-year [2] - Ceragon has surpassed consensus revenue estimates two times over the last four quarters, while it has only exceeded EPS estimates once in the same period [2] Earnings Outlook - The immediate price movement of Ceragon's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $98.35 million, and for the current fiscal year, it is $0.36 on revenues of $412.95 million [7] Industry Context - The Wireless Non-US industry, to which Ceragon belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ceragon's stock performance [5][6]

Core Insights - Ceragon achieved record operating profit and highest revenue levels since 2012, indicating successful execution of its growth strategy [4][6] - The company expanded its presence in India and grew its private network business, supported by two acquisitions [4][6] - Management expresses cautious optimism for 2025, anticipating growth and improved profitability amid initial recovery signs in the CSP market [4] Q4 2024 Financial Highlights - Revenues reached $106.9 million, an increase of 18.3% from $90.4 million in Q4 2023 and 4.1% from $102.7 million in Q3 2024 [5][6] - GAAP operating income was $9.5 million, compared to $4.2 million in Q4 2023 and $14.6 million in Q3 2024 [5][6] - Net income on a GAAP basis was $3.6 million, or $0.04 per diluted share, compared to a loss of $(1.2) million in Q4 2023 [6][7] FY 2024 Financial Highlights - Total revenues for FY 2024 were $394.2 million, up 13.5% from $347.2 million in 2023, marking the highest level since 2012 [8][9] - GAAP operating income reached a record $38.7 million, compared to $21.2 million in 2023 [8] - GAAP net income was $24.1 million, or $0.27 per diluted share, compared to $6.2 million in 2023 [9] Revenue Breakdown by Geography - In Q4 2024, revenue distribution was as follows: India 52%, EMEA 15%, North America 12%, APAC 11%, and Latin America 10% [11] - India achieved all-time record quarterly revenues, with improving visibility for 2025 commercial terms with major customers [6][11] Outlook for 2025 - Management expects revenue between $390 million and $430 million for 2025, including contributions from the E2E acquisition [11] - Non-GAAP operating margins are anticipated to be at least 10% at the low end of the revenue range, with improved free cash flow compared to 2024 [11]

Core Viewpoint - Ceragon Networks Ltd. (CRNT) is set to report its fourth-quarter 2024 results on February 11, with expectations of significant earnings growth and revenue increase compared to the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for earnings in the upcoming quarter is 10 cents, reflecting a 150% increase from the same quarter last year [2]. - Total revenue is projected at $104 million, indicating a 15% year-over-year growth [2]. - CRNT previously exceeded the Zacks Consensus Estimate for earnings by 77.8% in the last reported quarter [2]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Ceragon, with an Earnings ESP of -5.26% and a Zacks Rank of 3 (Hold) [3][4]. Market Demand and Growth Drivers - Strong demand for Ceragon's solutions, particularly in private networks in North America, is expected to support top-line performance [5]. - North America contributed $24.5 million to overall revenues in Q3 2024, highlighting the region's importance [5]. - Ceragon's strong presence in India, with revenues of $50.5 million in Q3 2024, is a significant growth driver as the market upgrades to 4G and 5G infrastructure [6]. Strategic Acquisitions - The acquisition of Siklu is anticipated to enhance market share in the Enterprise Security domain in North America, contributing to revenue growth [7]. - Ceragon's revenue guidance for 2024, including Siklu's contribution, is projected between $390 million and $400 million, representing a 12% to 15% year-over-year growth [8]. Profitability Outlook - Management expects non-GAAP operating margins to be at least 10% at the mid-point of the revenue guidance, indicating improved profitability [10]. Competitive Landscape - The company faces challenges from a slowdown in public network domains outside of India and intense competition from Chinese players in various regions [10][11]. - A slowdown in orders from Tier 1 customers in the CSP business was noted, which could impact revenue visibility [11]. Stock Performance - CRNT shares have increased by 83.6% over the past six months, outperforming the Wireless Non-U.S. industry and the Zacks S&P 500 composite [12]. - The stock is trading at a forward 12-month Price/Earnings ratio of 14.13X, which is higher than the industry average of 8.61X, indicating a premium valuation [15]. Strategic Focus - Ceragon aims to capitalize on growth initiatives in mmW products, Private Networks, and Managed Services, enhancing its competitive edge [16]. - Recent acquisitions, including End 2 End Technologies, are expected to provide synergies and operational efficiencies, although they also introduce integration risks [17][18].

Company Overview - Ceragon Networks (CRNT) shares increased by 11.4% to $5.37, following a period of 10.1% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company reported a 17.7% revenue increase in the last quarter, driven by strong demand for its solutions, particularly in the North American private networks sector and India [2] Acquisition Details - On February 3, 2025, Ceragon completed the acquisition of End 2 End Technologies, a U.S. systems integrator and software developer focused on Private Networks in the Energy and Utilities sectors [3] - This acquisition is expected to enhance Ceragon's position in the telecom market by providing system integration expertise and a unique network management platform [3] Financial Projections - Ceragon anticipates that the acquisition will be accretive to its non-GAAP earnings by the second half of 2025 [4] - For 2024, the company expects revenues between $390 million and $400 million, reflecting a year-over-year growth of 12% to 15% [4] - The upcoming quarterly earnings are projected at $0.11 per share, representing a 175% increase year-over-year, with revenues expected to reach $103.98 million, up 15.1% from the previous year [4] Market Trends - The consensus EPS estimate for Ceragon has remained unchanged over the last 30 days, suggesting that stock price movements may be influenced by trends in earnings estimate revisions [5][6] - Ceragon currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [6]

Expands Private Networks Offerings in North America; Expected to be Accretive to Non-GAAP Earnings Basis, by the Second Half of 2025 ROSH HA'AIN, Israel, Feb. 3, 2025 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, today announced that it has completed the acquisition of End 2 End Technologies, LLC, a U.S. systems integration and software development company that serves Private Networks, primarily in the Energy and Utilities markets. End 2 End Techno ...

BSc (Eng), MBA. Self-taught value investor with 2 decades of investing experience. Blogger at i4value.asia. The blog is on value investing through case studies where I analyze and value listed companies in the ASEAN and US regions. I have an exceptional perspective having served as a Board member of a Malaysia listed company for several decades. I have value investing book "Do you really want to master value investing?" on AmazonAnalyst’s Disclosure: I/we have no stock, option or similar derivative position ...

Ceragon Networks Ltd. (CRNT) shares have proven resilient, with a 70.7% gain in the past three months, outpacing the industry’s decline of 9.4%. Headquartered in Rosh HaAyin, Israel, Ceragon provides wireless backhaul and fronthaul solutions that enable cellular operators and other wireless service providers to increase operational efficiency.It has also outperformed the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 4.5% and 3.3%, respectively.The gain is also better than some o ...

Ceragon Networks Ltd. (CRNT) recently announced that it has entered into a definitive agreement to acquire End 2 End Technologies, LLC, a leading systems integration and software development company in the United States. The transaction is valued at approximately $8.5 million, with an additional potential payment of up to $4.3 million contingent on the company meeting specific financial targets in 2025, to be paid primarily in 2026. The acquisition is expected to be accretive to Ceragon’s non-GAAP earnings ...

Acquisition Details - Ceragon has entered into a definitive agreement to acquire End 2 End Technologies for approximately $8.5 million, with an additional $4.3 million contingent on achieving certain financial goals primarily in 2025 and paid mostly in 2026 [1] - The acquisition will be financed through Ceragon's available cash and unused credit facilities, with approximately 215,000 ordinary shares issued at closing [1] - The transaction is expected to close by the end of January 2025, subject to customary closing conditions [3] Strategic Impact - The acquisition is expected to accelerate Ceragon's strategy in the Private Networks domain, particularly in the Energy and Utilities markets [1] - End 2 End Technologies brings proven system integration capabilities and a unique network management software platform, which aligns with Ceragon's approach to innovation [2] - The acquisition is anticipated to generate $15-19 million in incremental revenue for Ceragon in 2025 and be accretive to non-GAAP earnings by the second half of 2025 [4] Company Profiles - End 2 End Technologies is a US-based systems integration and software development company with approximately 50 employees, specializing in the Energy and Utilities markets [2][5] - Ceragon is a global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services [6] Market and Industry Context - End 2 End Technologies has a strong brand and deep technical expertise in radio frequency communications, serving dozens of customers in the US [2] - Ceragon's solutions are deployed by over 600 service providers and more than 1,600 private network owners in over 130 countries, focusing on 5G & 4G broadband wireless connectivity and mission-critical services [11]

ROSH HA'AIN, Israel, Jan. 8, 2025 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, today announced that management will participate at the 27th Annual Needham Growth Conference in New York City.Doron Arazi, CEO, and Ronen Stein, CFO will host a presentation on Wednesday, January 15 at 8:45am ET. Interested parties can access a webcast of the presentation here or by visiting Ceragon's investor relations website at https://www.ceragon.com/investors/even ...