Dzs Inc Intrinsic Stock Value – D Z S I N C R e p o r t s F Y 2 0 2 2 Q 4 E a r n i n g s R e s u l t s N e a r l y T w o M o n t h s A f t e r Y e a r – E n d

Earnings Overview

DZS INC ($NASDAQ:DZSI) reported total revenue of -$14.6 million for their Q4 of fiscal year 2022, a staggering 538.6% decrease compared to the same period in FY2021. Net income for Q4 in FY2022 was $100.2 million, showing a 2.2% increase year-over-year. These results were made public on February 16, 2023.

Transcripts Simplified

DZS Inc reported $90 million in orders for Q4 resulting in a book to bill of 0.9 for the quarter, exiting 2022 with $321 million in RPOs, a 37% increase from 2021. Revenue was $100 million for the quarter, an increase of 2% year-over-year or 10% on a constant currency basis. Americas region increased 3% year-over-year to $28 million and EMEA increased 44% year-over-year to $21 million.

Q4 adjusted gross margin of 31% was impacted year-over-year by foreign currency and elevated supply chain costs partially offset by product mix improvements. Fabrinet manufacturing transition was completed by the end of Q4.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Dzs Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Dzs Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Dzs Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Dzs Inc are shown below. More…

Price History

On Thursday, DZS INC released their report on their Q4 earnings of FY 2022, nearly two months after their year-end close. The report showed that the stock opened at $12.6, but closed at $12.1, a 4.5% decrease from the previous closing price of $12.6. The company’s lower-than-expected revenue was the primary reason for the decrease in share prices. Analysts are currently divided on whether this dip in share prices signals a longer-term trend for DZS INC or is merely a short-term concern. Some analysts, who were disappointed by the Q4 results, believe that the company may have missed expectations due to an over reliance on certain products.

On the other hand, optimists are noting that the company still achieved significant growth in some areas, particularly in new customer acquisitions and customer retention rates. At the moment, DZS INC is in a state of flux as investors and analysts alike wait to see how the company will recover from their lower-than-expected Q4 earnings. The company is committed to continuing to invest in new initiatives in order to grow and sustain their market share in the years to come. It remains to be seen whether the company will be able to turn their recent earnings slump around and return to their previous levels of success. Live Quote…

Analysis – Dzs Inc Intrinsic Stock Value

GoodWhale has conducted an analysis of DZS INC‘s wellbeing. We have used our proprietary Valuation Line to determine the fair value of DZS INC’s share. According to the data, the fair value of DZS INC share is around $12.4. Currently, DZS INC stock is trading at $12.1, suggesting that the stock is undervalued by 2.3%. Therefore, investors may consider buying the stock at current price. More…

Peers

The competition in the telecommunications industry is fierce. DZS Inc. is up against some of the biggest names in the business, including Extreme Networks Inc., ADVA Optical Networking SE, and Ciena Corp. Each company is striving to provide the best products and services to their customers. While DZS Inc. has a strong presence in the market, its competitors are not far behind.

– Extreme Networks Inc ($NASDAQ:EXTR)

With a market cap of $2.5 billion and a return on equity of 40.12%, Extreme Networks is a publicly traded networking company that provides software-driven networking solutions to enterprise customers. The company delivers high-performance switching, routing, and security solutions that enable customers to build agile, data-driven networks that connect their people, applications, and devices.

– ADVA Optical Networking SE ($LTS:0NOL)

ADVA Optical Networking SE has a market cap of 1.08B as of 2022, a Return on Equity of 4.24%. The company provides optical and Ethernet-based networking solutions.

– Ciena Corp ($NYSE:CIEN)

Ciena is a network specialist that provides equipment, software and services that support mission-critical applications for communications service providers, enterprises and governments worldwide. Its products and services enable its customers to drive revenue, reduce expenses and improve efficiency by delivering high-capacity, high-speed networking solutions. Ciena’s common stock is listed on the NASDAQ Global Select Market under the symbol CIEN and is included in the S&P 500 index.

ROE is return on equity and is a measure of how well a company uses investment funds to generate profits. A company with a higher ROE is using funds more effectively to generate profits. Ciena’s ROE of 6.6% indicates that it is using funds efficiently to generate profits.

Ciena’s market cap is 6.64B as of 2022. This means that the market value of Ciena’s outstanding shares is 6.64B. Ciena’s market cap is a good indicator of the company’s size and its position in the market.

Summary

Investors in DZS INC were met with mixed results for the FY2022 Q4 earnings. Total revenue for the fourth quarter saw a sharp decline of 538.6% compared to the same period last year, yet the company managed to report a net income gain of 2.2%. Despite this, the stock price dropped on the same day.

It is uncertain how the market views DZS INC’s performance and whether this will indicate any future prospects for investing in the company. Investors should be wary and further research is recommended before making any decisions.