Jefferies analyst Samad Samana has adjusted the firm's price target for AudioCodes (AUDC, Financial), reducing it from $11 to $9. This decision comes after the company's recent Q1 report and the subsequent withdrawal of its fiscal 2025 guidance, which has introduced greater uncertainty. As a result, the analyst has maintained a Hold rating on the shares while revising estimates to reflect these changes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for AudioCodes Ltd (AUDC, Financial) is $11.75 with a high estimate of $12.50 and a low estimate of $11.00. The average target implies an upside of 36.47% from the current price of $8.61. More detailed estimate data can be found on the AudioCodes Ltd (AUDC) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, AudioCodes Ltd's (AUDC, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AudioCodes Ltd (AUDC, Financial) in one year is $11.83, suggesting a upside of 37.4% from the current price of $8.61. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AudioCodes Ltd (AUDC) Summary page.
AUDC Key Business Developments
Release Date: May 06, 2025
- Revenue: $60.4 million, up 0.5% from $60.1 million in Q1 2024.
- Services Revenue: $32.6 million, representing 54% of total revenues, up 3.4% year-over-year.
- Gross Margin: 64.8%, compared to 64.4% in Q1 2024.
- Operating Income: $3.6 million, or 6% of revenues, compared to $3.3 million, or 5.5% of revenues in Q1 2024.
- Net Income: $4 million, or $0.13 per diluted share, compared to $2.1 million, or $0.07 per diluted share in Q1 2024.
- Non-GAAP Gross Margin: 65.2%, unchanged from Q1 2024.
- Non-GAAP Operating Income: $5.4 million, or 8.9% of revenues, compared to $6.3 million, or 10.5% of revenues in Q1 2024.
- Non-GAAP Net Income: $4.7 million, or $0.15 per diluted share, compared to $5.2 million, or $0.17 per diluted share in Q1 2024.
- Cash and Equivalents: $95.7 million as of March 30, 2025.
- Net Cash from Operating Activities: $13.5 million for Q1 2025.
- Dividend: $0.18 per share, totaling approximately $5.5 million, paid on March 6, 2025.
- Tariff Impact: Estimated additional cost burden of $3 million to $4 million for the full year 2025.
- Deferred Revenues: $81.3 million as of March 30, 2025, compared to $80.5 million as of March 31, 2024.
- Employee Count: 962 employees at the end of Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AudioCodes Ltd (AUDC, Financial) reported a revenue increase of 0.5% year-over-year, reaching $60.4 million for the first quarter of 2025.
- The company's services revenue grew by 3.4% year-over-year, accounting for 54% of total revenues.
- AudioCodes Ltd (AUDC) achieved a gross margin of 64.8%, slightly higher than the previous year's 64.4%.
- The company is making significant progress in its transformation towards a cloud voice software and services company, with a focus on AI-powered voice services.
- AudioCodes Ltd (AUDC) has successfully attracted interest from large global system integrators for its conversational AI business voice services.
Negative Points
- The company has withdrawn its annual guidance due to the uncertainty surrounding tariffs and macroeconomic conditions.
- AudioCodes Ltd (AUDC) faces an estimated additional cost burden of $3 million to $4 million annually due to tariffs.
- Non-GAAP operating income for the first quarter decreased to $5.4 million from $6.3 million in Q1 2024.
- The company's non-GAAP net income per diluted share decreased to $0.15 from $0.17 in Q1 2024.
- The slow growth in services revenue this quarter is attributed to the timing of professional services project completion.
