Clearfield (CLFD) Stock Forecast & Price Target

Clearfield Inc has demonstrated strong performance in its sales segments, particularly with Cable (MSO) sales reaching $10 million, accounting for 24% of total revenue, and experiencing year-over-year growth of 33% and sequential growth of 9%. The company's revenue composition is becoming increasingly favorable, as key segments of Large Regionals and MSOs rose to 44% of the mix from 39% in the prior year, showcasing a sequential increase of 13% and a year-over-year growth of 31%. With optimistic projections indicating a core revenue growth of 6% in the first quarter and 10% in fiscal year 2026, alongside anticipated benefits from BEAD-driven demand and the introduction of new product lines, Clearfield is well-positioned for sustained growth.

Clearfield Inc's financial performance in F4Q25 showcased consolidated revenue of $50.4 million, reflecting an 8% year-over-year increase, but the significant GAAP EPS loss of $(0.65) was primarily attributable to a $10.4 million asset impairment from the divested Nestor business unit. The company anticipates a further decline in Community Broadband revenue, projected between $30 million and $33 million for 1Q, which is below market expectations due to disruptions from the government shutdown and delays related to the Broadband Equity, Access, and Deployment (BEAD) program. Moreover, the FY26 EPS guidance of $0.48 to $0.62 falls short of previous expectations, indicating ongoing challenges in securing government project subsidies and a weak market for Community Broadband services.