CMBM Reports Preliminary Q4 Results Amid Delay in 10K Filing

Cambium Networks Corporation CMBM recently released its preliminary fourth-quarter 2024 results, providing insights into its business operations amid a challenging macroeconomic environment. In the fourth quarter of fiscal 2024, Cambium is expected to have recorded revenues of $34 million, down from the previous estimated range of $40-45 million. This also indicates a decline from the $40.2 million reported in the year-ago quarter. The company is projected to report a net loss of $47 million or a loss of $1.66 per share compared with a loss of $52.9 million or $1.91 per share in the year-ago quarter.
 
For 2024, revenues are expected at $166 million, down from $220.2 million in 2023. Net loss is currently estimated at a loss of $92 million or a loss of $3.29 per share, wider than the net loss of $77.4 million or $2.81 per share reported in 2023. Top-line decline and non-cash charges of $27 million related to the impairment of goodwill, long-life assets, and other intangible assets have led to wider losses in 2024. The impairment is primarily caused by competitive market pressure and soft demand trends.

Will This Factor Impact CMBM’s Share Price?

Cambium has highlighted several factors causing this downtrend. The company has identified some issues in its assessment of internal control over financial reporting. These issues are related to allowance for credit losses, customer incentives, and IT general controls. Cambium has undertaken initiatives to resolve these material weaknesses, address the underlying causes for this and implement additional processes.

However, despite these efforts, indications of such lackluster performance have sparked concern about CMBM’s long-term business prospects. Cambium conducts its operations in an intensely competitive environment wherein its business is susceptible to rapid technology shifts. The company has to significantly invest in research & development (R&D) activities to expand its product offerings to improve its competitive edge, which strains its margins. Amid this backdrop, CMBM’s tepid financial results will make it vulnerable to macroeconomic challenges and negatively impact investors’ confidence.

CMBM’s Stock Price Movement

The stock has lost 83.8% in the past year against the industry’s growth of 41.1%.

CMBM’s Zacks Rank

Cambium currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the broader industry have been discussed below.

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Celestica Inc. CLS sports a Zacks Rank #1 at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.

United States Cellular Corporation USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.

U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research