CMBM Earnings Prediction
The chart below shows how CMBM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMBM sees a -3.12% change in stock price 10 days leading up to the earnings, and a -11.60% change 10 days following the report. On the earnings day itself, the stock moves by +0.56%. This data can give you a slight idea of what to expect for the next quarter's release.
CMBM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
43.73M
1.58%
-4.83%
Gross Margin
36.05%
64.84%
30.00%
Operating Margin
-18.43%
-64.10%
-30.03%
Net Margin
-22.13%
-63.64%
11.21%
EPS
-0.34
-64.21%
3.03%
No Data Available
CMBM Earnings Analysis
Cambium Networks Corporation Ordinary Shares Corporation (CMBM.O) Earnings Conference Call
Positive
Enterprise Revenue Surge: 1. Revenue Growth in Enterprise Business: Cambium Networks reported Q3 '24 revenues of $43.7 million, with a significant 34% sequential growth in the Enterprise business, reaching $15.2 million.
Gross Margin Improvement: 2. Improved Gross Margin: The non-GAAP gross margin for Q3 '24 increased to 42.3%, up from 33.5% in Q2, reflecting effective cost management and reduced excess inventory charges.
Strong Cash Management: 3. Positive Free Cash Flow: The company generated a positive free cash flow of $5.2 million during Q3 '24, indicating strong cash management and operational efficiency.
Cash Balance Increase: 4. Increased Cash Balance: Cambium's cash balance stood at $46.5 million as of September 30, 2024, demonstrating a solid liquidity position.
Device Management Adoption Growth: 5. Growth in Device Management: Total devices under cnMaestro Cloud Management increased by approximately 3% from Q2 '24 and over 14% year-over-year, indicating strong adoption of Cambium's management platform.
Negative
Revenue Decline Analysis: 1. Decline in Overall Revenue: Cambium Networks reported a revenue of $43.7 million for Q3 '24, which represents a 5% decrease sequentially, primarily due to declines in the P2P and PMP businesses.
P2P Business Decline: 2. Significant Drop in P2P Business: The P2P business experienced a substantial decline of 32% sequentially, attributed to weakness in defense orders, particularly in Europe.
Non-GAAP Net Loss: 3. Non-GAAP Net Loss: The company reported a non-GAAP net loss of $3.8 million for Q3 '24, which, although an improvement from the previous quarter, still indicates ongoing financial challenges.
Covenant Breach Indicators: 4. Covenant Noncompliance: Cambium was not in compliance with its trailing consolidated EBITDA covenant as of September 30, 2024, and also failed to meet the monthly liquidity covenant as of October 31, 2024, indicating financial instability.
Q4 Revenue Challenges: 5. Weak Outlook for Q4 Revenue: The financial outlook for Q4 2024 projects revenues between $40 million and $45 million, suggesting continued challenges in revenue generation compared to previous quarters.
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CMBM Earning Call Sentiment
Cambium Networks Corporation (CMBM) Q3 2024 Earnings Call Transcript
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00:00
00:00
CMBM.O
12.61%Positive
The earnings call presents a mixed picture. Financial performance shows improvement in margins and cash flow, but challenges remain with defense revenue and covenant compliance. Product developments and enterprise growth are positive, yet market competition and economic factors pose risks. The Q&A reveals optimism for gross margin improvements, but uncertainty about defense business and banking issues. Overall, the sentiment is neutral, with balanced positives and negatives, leading to an expected stock price movement within the neutral range of -2% to 2% over the next two weeks.