Rosenblatt has increased its price target for Calix (CALX, Financial) from $56 to $65, maintaining a Buy rating on the stock. This decision follows the company's impressive second-quarter results and optimistic guidance for the third quarter. The firm highlights the success of Calix's broadband customers, who are gaining market share, boosting revenue per user, and reducing customer churn significantly. According to Rosenblatt, Calix offers an exceptional product, strategy, and business model, making it a highly recommended investment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Calix Inc (CALX, Financial) is $53.20 with a high estimate of $60.00 and a low estimate of $50.00. The average target implies an downside of 0.99% from the current price of $53.73. More detailed estimate data can be found on the Calix Inc (CALX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Calix Inc's (CALX, Financial) average brokerage recommendation is currently 2.3, 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 Calix Inc (CALX, Financial) in one year is $43.93, suggesting a downside of 18.24% from the current price of $53.73. 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 Calix Inc (CALX) Summary page.
CALX Key Business Developments
Release Date: April 22, 2025
- Revenue: $220 million, representing 7% sequential quarterly growth.
- Non-GAAP Gross Margin: 56.2%, a record for the company.
- Remaining Performance Obligations (RPOs): $340 million, up 4% sequentially and 39% year over year.
- Current RPOs: $128 million, up 6% sequentially and 30% year over year.
- New BSP Customers: 16 added in the first quarter.
- Free Cash Flow: Double-digit for the eighth consecutive quarter.
- Cash and Investments: $282 million, after $40 million in share repurchases.
- Days Sales Outstanding (DSO): 30 days, down six days sequentially and 10 days year over year.
- Inventory Turns: 3.6.
- Q2 2025 Revenue Guidance: $221 million to $227 million, a 2% sequential increase at the midpoint.
- Stock Repurchase Program: Increased by $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Calix Inc (CALX, Financial) reported strong demand in the first quarter, delivering revenue of $220 million, which represented a 7% sequential quarterly revenue growth.
- The company achieved a record non-GAAP gross margin of 56.2% in the first quarter, driven by customer mix and new subscriber wins.
- Calix Inc (CALX) added 16 new BSP customers, with the majority being competitive takeaways, indicating strong market positioning.
- The company maintained a strong balance sheet, generating double-digit free cash flow for the eighth consecutive quarter and ending with cash and investments of $282 million.
- Calix Inc (CALX) increased its stock repurchase program by $100 million, reflecting confidence in its financial position and future prospects.
Negative Points
- The dynamic environment presents challenges in forecasting costs with precision, potentially impacting financial performance.
- The company faces ongoing uncertainty related to tariffs, which could affect future costs and supply chain dynamics.
- Calix Inc (CALX) acknowledges the inherent lumpiness in its business, particularly with large customer accounts, which can lead to variability in quarterly results.
- The company is not including potential BEAD funding in its growth forecasts due to uncertainty around timing and disbursement.
- Despite strong performance, Calix Inc (CALX) operates in a competitive market with ongoing challenges from other broadband providers and technology shifts.
