Viavi Solutions Stock Intrinsic Value – VIAVI SOLUTIONS Sees Stock Drop Following Preliminary Third-Quarter Revenue Report
April 19, 2023
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VIAVI ($NASDAQ:VIAV) Solutions, a company that specializes in providing end-to-end network and service assurance solutions for communication service providers, experienced a notable drop in stock prices following the release of its preliminary third-quarter revenue report. Investors responded sourly to the news, causing the stock to drop 8%. VIAVI Solutions has been a leader in the network and service assurance market for years. The company’s portfolio includes solutions for testing, monitoring, and optimizing networks, as well as analytics for service assurance.
Though the preliminary third-quarter revenue report showed solid growth over the previous quarter, it still fell short of investor expectations. This, combined with the uncertainty surrounding the company’s future performance, has caused VIAVI Solutions’ stock to suffer a significant decline.
Share Price
On Monday, VIAVI SOLUTIONS saw its stock price drop by 9.1%, opening at $9.4 and closing at $9.3, much lower than its previous closing price of 10.2. This steep decline came after the company released its preliminary third-quarter revenue report. The report revealed that the company’s revenue was below analyst expectations and provided little optimism for investors.
The uncertainty surrounding the company’s future caused investors to fear that it may not be able to meet its current growth projections. Consequently, VIAVI SOLUTIONS stock dropped significantly as investors cashed out of their positions in the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Viavi Solutions. More…
| Total Revenues | Net Income | Net Margin |
| 1.25k | 76.7 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Viavi Solutions. More…
| Operations | Investing | Financing |
| 175.3 | -134.4 | -260.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Viavi Solutions. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.83k | 1.14k | 3.06 |
Key Ratios Snapshot
Some of the financial key ratios for Viavi Solutions are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.2% | 16.9% | 12.5% |
| FCF Margin | ROE | ROA |
| 8.4% | 14.6% | 5.3% |
Analysis – Viavi Solutions Stock Intrinsic Value
After conducting a thorough analysis of VIAVI SOLUTIONS‘s fundamentals, GoodWhale has come to the conclusion that the fair value of their common stock is around $13.5. This was determined using our proprietary Valuation Line, which takes into account a variety of factors such as the company’s financials, market performance and industry trends. At the time of writing, VIAVI SOLUTIONS’ stock is trading at $9.3, which implies that it is currently undervalued by 31.3%. We believe this is an excellent opportunity for investors to capitalize on and make a decent return in the near future. More…
Peers
The company offers a portfolio of solutions that enable its customers to optimize and assure the performance of their networks and applications. Its competitors include Raisecom Technology Co Ltd, TPT Global Tech Inc, Calnex Solutions PLC.
– Raisecom Technology Co Ltd ($SHSE:603803)
Raisecom Technology Co Ltd is a Chinese company that manufactures and sells telecommunications equipment. The company has a market capitalization of $3.12 billion as of 2022 and a return on equity of -0.43%. Raisecom Technology Co Ltd’s products include routers, switches, and network interface cards. The company also provides software and services for voice and data communications.
– TPT Global Tech Inc ($OTCPK:TPTW)
TPT Global Tech Inc is a publicly traded company with a market capitalization of $3.14 million as of 2022. The company has a return on equity of 6.63%. TPT Global Tech Inc is a provider of telecommunications and technology solutions. The company offers a range of services, including voice, data, and video communications; broadband and wireless Internet; and managed network and security solutions.
– Calnex Solutions PLC ($LSE:CLX)
Calnex Solutions is a leading provider of network test and measurement solutions. The company’s products are used by network operators and equipment manufacturers worldwide to ensure the quality and performance of their networks. Calnex’s products are used in all phases of the network lifecycle, from design and development to deployment and operations. The company’s products are backed by a team of expert engineers who are dedicated to providing the highest quality products and support.
Summary
VIAVI Solutions Inc. recently released its preliminary third-quarter earnings report, and the results fell short of expectations, causing VIAVI’s stock price to drop 8%. This is a cause for concern for investors, as it could indicate a weakening of VIAVI’s financial performance and growth prospects. Despite being a leader in the telecommunications testing and measurement industry, investors should take a closer look at the company’s financials, including its balance sheet and income statement, to determine whether the stock is worth investing in.
Furthermore, analysts should review VIAVI’s market position and competition, customer trends, management strategies, and product pipeline to assess the company’s ability to generate sustainable earnings in the long-term. By conducting a thorough analysis of all these factors, investors can gain insight into the company’s prospects and make an informed decision about their investment in VIAVI Solutions.
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