Harmonic Swings To Q3 Profit, Lifts FY21 Outlook; Shares Up 9%

(RTTNews) - Shares of Harmonic Inc. (HLIT) jumped nearly 9% in after hours trading on Monday after the company reported a swing to profit in the third quarter, driven by 33% surge in revenues. Moving ahead, the company also lifted its full year outlook.

Third-quarter net income was $1.5 million or $0.01 per share, compared to last year's loss of $5.4 million or $0.06 per share last year. On an adjusted basis, net income were $9.5 million or $0.09 per share, compare to last year's adjusted income of $2.6 million or $0.03 per share last year.

Revenues grew to $126.3 million from $94.9 million last year.

Analysts polled by Thomson Reuters expected earnings of $0.03 per share on revenues of $117.83 million. Analysts' estimates typically exclude one-time items.

Looking forward to the fourth quarter, the company expects revenues of $147.0 million to $157.0 million and adjusted earnings of $0.10 to $0.14 per share. Analysts currently estimates earnings of $0.13 per share on revenues of $141.36 million.

Previously, the company expected adjusted earnings of $0.09 to $0.15 per share and revenues of $133.0 million to $148.0 million.

For the full year 2021, the company now expects earnings of $0.28 to $0.32 per share and revenues of $499.0 million to $509.0 million. Analysts currently estimate earnings of $0.26 per share on revenues of $484.47 million.

Previously, the company expected full year revenues of $470.0 million to $495.0 million and adjusted earnings of $0.19 to $0.29 per share.

"Harmonic delivered another strong quarter, with total revenue up 33% year over year and solid operating profit, driven by continued execution of our strategic growth initiatives," said Patrick Harshman, president and chief executive officer of Harmonic. "Strong market momentum in both segments, solid backlog and deferred revenue and an increasingly robust cash position provide a strong foundation for continued growth through the balance of this year and into 2022."

HLIT closed Monday's trading at $9.33, up $0.26 or 2.87%, on the Nasdaq. The stock further gained $0.82 or 8.79% in the after-hours trading.