
Harmonic (HLIT) Stock Forecast & Price Target
Harmonic (HLIT) Analyst Ratings
Bulls say
Harmonic Inc. demonstrated solid performance in Q3, ending with 142 live cOS customers, a 17% increase year-over-year, and connecting a total of 37.6 million modems, reflecting an 18% year-over-year growth. The company achieved a net gross margin of 54.4%, which surpassed consensus expectations, driven by an enhanced product mix of higher-margin broadband products and an uptick in demand from both new and existing customers in the Broadband and Video segments. Furthermore, the balance sheet revealed an improvement in Days Sales Outstanding (DSO) from 80 to 66 and an increase in inventory days, indicating better efficiency in collections and inventory management, strengthening the overall financial outlook for Harmonic.
Bears say
Harmonic Inc has experienced a notable decline in non-Comcast revenue, falling by 15% year-over-year to $81 million, primarily attributed to customer setbacks from Charter, despite potential growth from new accounts like Mediacom and Astound. Gross margins decreased to 66.7% from 69.0% a year prior, signifying decreased profitability amid operational challenges, and the company has guided for a significant reduction in Broadband revenue for the fourth quarter, with projections indicating a drop of approximately 45% year-over-year. Furthermore, with customer concentration heavily tilted towards Comcast, which contributed 43% of total revenue but reported a 39% year-over-year decline, along with a reduced backlog and deferred revenue, the overall outlook for Harmonic's stock appears negative.
This aggregate rating is based on analysts' research of Harmonic and is not a guaranteed prediction by Public.com or investment advice.
Harmonic (HLIT) Analyst Forecast & Price Prediction
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