Aviat Networks (NASDAQ:AVNW) Posts Quarterly Earnings Results, Misses Expectations By $0.36 EPS

Aviat Networks (NASDAQ:AVNW) released its earnings results on Monday. The communications equipment provider reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.36), FiscalAI reports. Aviat Networks had a return on equity of 6.92% and a net margin of 2.08%.The firm had revenue of $100.00 million during the quarter, compared to the consensus estimate of $106.39 million.

Here are the key takeaways from Aviat Networks’ conference call:

• Q3 results were weak with total revenue of $100.0M (down from $112.6M YoY) and GAAP gross margin slipping to ~29.3%; management said about $9 million of revenue was pushed out due to the Middle East conflict.
• Updated fiscal 2026 guidance calls for full-year revenue of $428M–$440M and adjusted EBITDA of $35M–$40M, with management expecting Q4 normalization but keeping a range due to timing risks.
• Management signaled meaningful upside from the MDU program — Aviat is supplier of choice with live deployments in >5 markets and expects an “eight‑figure” revenue contribution in fiscal 2027 and further demand for next‑gen products in 2028.
• Tailwinds from utilities and BEAD: utilities (near 10% of revenue) see rising grid modernization spend and AI-related power investment, while BEAD-related wireless POs are expected to begin mid‑late 2026 with the biggest ramp in calendar 2027, positioning Aviat to capture rural broadband and fixed‑wireless demand.
• Balance sheet and tax prospects improved — cash and marketable securities of $78.1M, net debt ~$26.1M, inventories down $4M, working capital improving, plus >$450M NOLs and a possible release of a foreign deferred tax valuation allowance within the next year that could produce a one‑time GAAP benefit.

Aviat Networks Stock Down 33.3%

Aviat Networks stock opened at $15.09 on Wednesday. The company has a quick ratio of 1.56, a current ratio of 1.85 and a debt-to-equity ratio of 0.37. The firm has a market cap of $194.66 million, a P/E ratio of 21.87 and a beta of 0.82. The business has a fifty day moving average of $23.39 and a two-hundred day moving average of $22.86. Aviat Networks has a twelve month low of $13.92 and a twelve month high of $27.02.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. B. Riley Financial reiterated a “buy” rating and issued a $36.00 price target (up from $35.00) on shares of Aviat Networks in a report on Wednesday, February 4th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $30.00 price objective on shares of Aviat Networks in a research report on Wednesday, February 4th. Northland Securities reiterated a “market perform” rating and set a $20.00 target price on shares of Aviat Networks in a research report on Tuesday. Wall Street Zen cut shares of Aviat Networks from a “buy” rating to a “hold” rating in a report on Sunday, April 26th. Finally, Roth Mkm reduced their price target on shares of Aviat Networks from $41.00 to $38.00 and set a “buy” rating on the stock in a research note on Wednesday, February 4th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $31.00.

Insider Buying and Selling at Aviat Networks

In related news, SVP Gary Croke sold 6,914 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $26.20, for a total transaction of $181,146.80. Following the completion of the sale, the senior vice president directly owned 43,868 shares in the company, valued at $1,149,341.60. This represents a 13.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Pete A. Smith sold 17,086 shares of the firm’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $26.33, for a total value of $449,874.38. Following the completion of the sale, the chief executive officer directly owned 358,747 shares of the company’s stock, valued at approximately $9,445,808.51. This represents a 4.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Aviat Networks

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Comerica Bank increased its holdings in shares of Aviat Networks by 40.2% in the first quarter. Comerica Bank now owns 2,720 shares of the communications equipment provider’s stock valued at $52,000 after purchasing an additional 780 shares during the period. BNP Paribas Financial Markets lifted its holdings in shares of Aviat Networks by 96.5% during the third quarter. BNP Paribas Financial Markets now owns 2,281 shares of the communications equipment provider’s stock worth $52,000 after purchasing an additional 1,120 shares during the period. Rhumbline Advisers boosted its position in Aviat Networks by 6.7% in the second quarter. Rhumbline Advisers now owns 18,341 shares of the communications equipment provider’s stock valued at $441,000 after buying an additional 1,148 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in Aviat Networks in the second quarter valued at approximately $28,000. Finally, Quarry LP acquired a new position in Aviat Networks in the 3rd quarter worth approximately $27,000. Hedge funds and other institutional investors own 78.62% of the company’s stock.

Aviat Networks Company Profile

Aviat Networks, Inc is a specialist in wireless transport solutions, designing, manufacturing and selling microwave networking products that enable the secure and reliable transmission of data, voice and video. The company’s offerings address mission-critical communications needs for a broad range of end markets, including telecommunications service providers, utilities, government agencies and enterprises. Its product portfolio spans high-capacity packet microwave radios, IP transport systems and network management software.

Aviat’s core product lines include the WTM series of packet microwave platforms, which deliver scalable throughput and advanced resilience features, and the Eclipse packet microwave systems, which combine broadband capacity with synchronization, security and quality-of-service capabilities.