Ribbon Communications Inc. (NASDAQ:RBBN) stock soared to a 52-week high of $4.35, reflecting a remarkable year-over-year surge in investor confidence. The company, formerly known as Sonus Networks , has witnessed a substantial 44.83% increase in its stock value over the past year. With a market capitalization of $731 million, InvestingPro data reveals the stock has maintained strong momentum, posting an impressive 37.6% gain in the past six months alone. This impressive ascent is attributed to the company’s strategic initiatives and strong market performance, which have resonated well with investors and analysts alike. The 52-week high milestone underscores the positive sentiment surrounding RBBN’s growth prospects and its potential for continued momentum in the telecommunications sector. While currently unprofitable, InvestingPro analysis shows analysts expect the company to achieve profitability this year with a forecasted EPS of $0.21. Discover 8 additional key insights and a comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Ribbon Communications reported steady growth in its Q3 financial results for 2024, with sales rising to $210 million, a 3.5% year-over-year increase. This growth was driven primarily by the Cloud & Edge segment, which reached a revenue of $128 million. Despite a 6% decline in IP Optical revenue, the company saw a 60% sales increase in the federal and defense sector. Adjusted non-GAAP EBITDA stood at $30 million, with the gross margin remaining consistent at 55%.
Looking ahead, Ribbon Communications projects mid-single-digit revenue growth for 2025, with an anticipated double-digit earnings growth. The company’s fourth quarter is expected to show approximately an 8% year-over-year sales growth, with revenue estimates ranging between $235 million and $255 million. The non-GAAP gross margins are expected to range from 55.5% to 56%, with adjusted EBITDA between $46 million and $52 million.
B.Riley reiterated its Buy rating on Ribbon Communications with a steady price target of $6.00, highlighting the company’s positive trajectory in key financial metrics. The firm raised its 2024 revenue and AEBITDA estimates for Ribbon Communications, reflecting an optimistic outlook for the company’s future performance. The company has also highlighted the potential for voice modernization projects with Verizon (NYSE:VZ) and new account opportunities due to the upcoming merger of Nokia (HE:NOKIA) and Infinera (NASDAQ:INFN).
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.