Extreme Networks (NASDAQ:EXTR) Releases FY 2027 Earnings Guidance

Extreme Networks (NASDAQ:EXTR) updated its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 1.280-1.330 for the period, compared to the consensus EPS estimate of 1.210. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.4 billion. Extreme Networks also updated its Q1 2027 guidance to 0.270-0.290 EPS.

Extreme Networks Stock Up 7.9%

Shares of EXTR stock opened at $32.34 on Wednesday. The company has a current ratio of 0.91, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. Extreme Networks has a 1 year low of $13.48 and a 1 year high of $33.73. The firm’s fifty day moving average price is $30.37 and its two-hundred day moving average price is $21.73. The firm has a market capitalization of $4.23 billion, a P/E ratio of 269.50, a PEG ratio of 1.84 and a beta of 1.79.

Extreme Networks (NASDAQ:EXTR) last posted its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.03. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. The company had revenue of $338.55 million during the quarter, compared to the consensus estimate of $332.49 million. During the same period in the prior year, the business posted $0.25 EPS. The company’s quarterly revenue was up 10.3% on a year-over-year basis. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. On average, equities analysts predict that Extreme Networks will post 0.53 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. B. Riley Financial reiterated a “buy” rating on shares of Extreme Networks in a report on Thursday, April 30th. Wall Street Zen downgraded Extreme Networks from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Rosenblatt Securities boosted their price target on Extreme Networks from $29.00 to $39.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. Weiss Ratings upgraded Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, July 6th. Finally, Needham & Company LLC increased their price objective on Extreme Networks from $26.00 to $38.00 and gave the company a “buy” rating in a report on Wednesday, July 22nd. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $32.83.

Insider Activity

In related news, CEO Edward Meyercord sold 50,000 shares of Extreme Networks stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $29.79, for a total transaction of $1,489,500.00. Following the completion of the transaction, the chief executive officer owned 1,596,475 shares in the company, valued at approximately $47,558,990.25. This trade represents a 3.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kathleen M. Holmgren sold 19,521 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $24.78, for a total value of $483,730.38. Following the transaction, the director directly owned 219,308 shares in the company, valued at approximately $5,434,452.24. This trade represents a 8.17% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 422,182 shares of company stock valued at $11,905,205. Company insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. State Street Corp raised its stake in Extreme Networks by 3.9% in the 4th quarter. State Street Corp now owns 5,664,493 shares of the technology company’s stock valued at $94,314,000 after acquiring an additional 213,094 shares during the period. Paradigm Capital Management Inc. NY boosted its position in Extreme Networks by 0.8% during the fourth quarter. Paradigm Capital Management Inc. NY now owns 4,972,500 shares of the technology company’s stock worth $82,792,000 after purchasing an additional 40,000 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in shares of Extreme Networks by 13.5% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,017,063 shares of the technology company’s stock valued at $50,234,000 after purchasing an additional 358,670 shares during the last quarter. Alyeska Investment Group L.P. increased its holdings in shares of Extreme Networks by 301.9% in the fourth quarter. Alyeska Investment Group L.P. now owns 2,971,718 shares of the technology company’s stock valued at $49,479,000 after purchasing an additional 2,232,373 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of Extreme Networks by 1.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,771,240 shares of the technology company’s stock valued at $46,141,000 after purchasing an additional 36,163 shares during the period. 91.05% of the stock is owned by institutional investors and hedge funds.

Extreme Networks Company Profile

Extreme Networks, Inc (NASDAQ: EXTR) is a global provider of end-to-end networking solutions designed to support enterprise, data center, and service provider environments. The company’s product portfolio encompasses high-performance wired and wireless access switches, routers, network security appliances, and software-defined networking (SDN) tools. Driven by a cloud-native management architecture, Extreme’s Intelligent Edge Platform integrates network analytics, automation and orchestration capabilities to help organizations optimize performance, reduce operational complexity and strengthen security.

Since its founding in the mid-1990s and subsequent public listing in 1999, Extreme Networks has expanded its technology footprint through targeted acquisitions.