Exploring Extreme Networks's Earnings Expectations
Extreme Networks (NASDAQ:EXTR) is preparing to release its quarterly earnings on Wednesday, 2025-08-06. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Extreme Networks to report an earnings per share (EPS) of $0.17.
Extreme Networks bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Performance in Previous Earnings
The company's EPS beat by $0.03 in the last quarter, leading to a 4.94% increase in the share price on the following day.
Here's a look at Extreme Networks's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.18 | 0.18 | 0.12 | 0.13 |
| EPS Actual | 0.21 | 0.21 | 0.17 | -0.08 |
| Price Change % | 5.0% | -1.0% | -6.0% | 6.0% |
Tracking Extreme Networks's Stock Performance
Shares of Extreme Networks were trading at $18.07 as of August 04. Over the last 52-week period, shares are up 37.83%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on Extreme Networks
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Extreme Networks.
With 2 analyst ratings, Extreme Networks has a consensus rating of Buy. The average one-year price target is $20.0, indicating a potential 10.68% upside.
Peer Ratings Comparison
In this analysis, we delve into the analyst ratings and average 1-year price targets of Viavi Solutions, Viasat and Applied Optoelectronics, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Viavi Solutions, with an average 1-year price target of $13.5, suggesting a potential 25.29% downside.
- Analysts currently favor an Buy trajectory for Viasat, with an average 1-year price target of $28.0, suggesting a potential 54.95% upside.
- Analysts currently favor an Buy trajectory for Applied Optoelectronics, with an average 1-year price target of $28.0, suggesting a potential 54.95% upside.
Overview of Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Viavi Solutions, Viasat and Applied Optoelectronics, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Extreme Networks | Buy | 34.81% | $175.41M | 5.63% |
| Viavi Solutions | Buy | 15.77% | $160.70M | 2.76% |
| Viasat | Buy | -0.25% | $365.30M | -5.28% |
| Applied Optoelectronics | Buy | 145.52% | $30.54M | -3.41% |
Key Takeaway:
Extreme Networks is positioned at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.
All You Need to Know About Extreme Networks
Extreme Networks Inc provides cloud networking solutions and industry services and support. Extreme designs, develops, and manufactures wired, wireless, and software-defined wide area-network (SD- WAN) infrastructure equipment, software and cloud-based network management solutions. The company's cloud solution is a single platform that offers unified network management of wireless access points, switches, and SD-WAN. The company operates in a single segment which develops and markets network infrastructure equipment. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, Africa, and Asia-Pacific.
Financial Milestones: Extreme Networks's Journey
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Extreme Networks displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 34.81%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Extreme Networks's net margin excels beyond industry benchmarks, reaching 1.22%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Extreme Networks's ROE excels beyond industry benchmarks, reaching 5.63%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Extreme Networks's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.32%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Extreme Networks's debt-to-equity ratio stands notably higher than the industry average, reaching 3.17. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Extreme Networks visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
