Why Sonus Networks, Inc. Stock Jumped on Friday

FAN Editor

What happened

Continue Reading Below

Shares of network communications and network security company Sonus (NASDAQ: SONS) rose as much as 12.3% on Friday after the company released preliminary results for its third quarter. The stock is up 5.5% as of 12:15 EDT.

The stock’s move likely reflects the company’s significant outperformance relative to its guidance for the quarter. Preliminary revenue and non-GAAP earnings per share (EPS) were $74.5 million and between $0.25 and $0.26, respectively. Management had guided for revenue to be in the range of $70 million to $72 million and non-GAAP EPS to be between $0.17 and $0.20.

So what

Sonus CEO Raymond Dolan credited its strong third quarter to hitting some “major milestones for a large competitive displacement in North America” and a higher gross margin driven by strength in its software solutions.

Now what

Continue Reading Below

For the full year, Sonus had previously guided for revenue to be from flat to a low single-digit percentage decline compared to 2016. But in Sonus’ preliminary third quarter, the company said it now expects full-year results to be in line with the high end of the guidance range it previously provided. In other words, Sonus now expects full-year 2017 revenue to be flat compared to 2016.

10 stocks we like better than Sonus Networks
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and Sonus Networks wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of October 9, 2017

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Next Post

Timeline of Weinstein allegations dating back decades

NEW YORK –  Here is a timeline of allegations against film producer Harvey Weinstein, who has denied having any nonconsensual sexual conduct with any women. Continue Reading Below — 1984: Tomi-Ann Roberts, a 20-year-old aspiring actress, meets Weinstein in his New York hotel room to discuss a film. Weinstein is […]