Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - JMP Securities has reiterated its Market Outperform rating and $6.00 price target on Ribbon Communications (NASDAQ:RBBN) following the company’s strong second-quarter 2025 results. According to InvestingPro data, the company, currently valued at $750 million, is trading near its Fair Value, with analysts setting targets between $5.50 and $6.50.
Ribbon Communications reported revenue of $220.6 million for the second quarter, representing a 15% year-over-year increase and exceeding the consensus estimate of $213.4 million. The company’s adjusted EBITDA reached $31.8 million, up 47% year-over-year and surpassing the consensus forecast of $29.7 million. While not currently profitable, InvestingPro analysis indicates that net income is expected to grow this year, with a solid gross profit margin of 54.3%.
JMP analyst Trevor Walsh noted that Ribbon Communications expects the fourth quarter to be the strongest of the year, indicating the company is "in an up cycle and gaining momentum" during "a multiyear investment period to modernize communication networks." This optimistic outlook is supported by four analysts who have revised their earnings estimates upward for the upcoming period, as revealed by InvestingPro’s comprehensive analysis.
According to CEO Bruce McClelland, Ribbon Communications continues to "secure new wins with our IP optical portfolio customers" who must "invest aggressively to keep up with the growth in traffic, driven by mobile broadband, fiber network expansion, and explosive data center growth."
Ribbon Communications stock has gained approximately 2.2% year-to-date, underperforming the Russell 3000 index, which has risen about 7.4% during the same period.
In other recent news, Ribbon Communications Inc. announced its second-quarter 2025 earnings, which met expectations for earnings per share (EPS) and surpassed revenue forecasts. The company reported an EPS of $0.05, aligning with analyst predictions. Revenue reached $221 million, exceeding expectations by 3.57%. These developments indicate a positive revenue surprise for the company. Additionally, the earnings call highlighted the company’s financial performance, which could be of interest to investors. This revenue beat reflects positively on the company’s recent financial health. Analysts had forecasted these financial figures, and the company managed to meet and exceed these projections.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.