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SAN JOSE - Harmonic Inc . (NASDAQ:HLIT) reported better-than-expected fourth quarter results but saw its shares tumble 21.2% after issuing disappointing guidance for 2025.
The video delivery and broadband access technology company posted adjusted earnings per share of $0.45, surpassing analyst estimates of $0.37. Revenue for the quarter came in at $222.2 million, beating the consensus of $219.95 million and representing a 33% YoY increase.
However, Harmonic’s outlook fell short of expectations. For Q1 2025, the company forecasts EPS of $0.02-$0.08 on revenue of $120-$135 million, well below analyst projections of $0.12 EPS and $149.39 million in revenue. The full-year 2025 guidance was also weak, with EPS of $0.43-$0.68 on revenue of $585-$645 million, compared to consensus estimates of $0.87 EPS and $720.73 million in revenue.
Nimrod Ben-Natan, president and CEO of Harmonic, commented on the results: "The strong performance in Broadband demonstrates our ability to scale to our customers’ needs and our technology leadership has never been stronger, leaving us well-positioned to take advantage of expected long-term growth in broadband DOCSIS 4.0 and Fiber."
The company attributed the soft guidance to shifts in customer deployment timing as operators transition to Unified DOCSIS 4.0. Harmonic expects these industry-wide trends to be short-term and anticipates resuming above-market growth in 2026.
Despite the weak outlook, Harmonic’s board authorized a new $200 million share repurchase program, doubling its previous program. The company ended the quarter with $101.5 million in cash, up from $84.3 million a year ago.
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