Extreme Networks (NASDAQ:EXTR) Updates Q1 2027 Earnings Guidance

Extreme Networks (NASDAQ:EXTR) updated its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.270-0.290 for the period, compared to the consensus earnings per share estimate of 0.260. The company issued revenue guidance of $334.0 million-$339.0 million, compared to the consensus revenue estimate of $332.3 million. Extreme Networks also updated its FY 2027 guidance to 1.280-1.330 EPS.

Extreme Networks Stock Up 7.9%

Shares of Extreme Networks stock opened at $32.34 on Wednesday. Extreme Networks has a 1 year low of $13.48 and a 1 year high of $33.73. The firm has a market cap of $4.23 billion, a price-to-earnings ratio of 269.50, a PEG ratio of 1.84 and a beta of 1.79. The company has a 50-day moving average of $30.37 and a 200 day moving average of $21.73. The company has a debt-to-equity ratio of 1.89, a current ratio of 0.91 and a quick ratio of 0.78.

Extreme Networks (NASDAQ:EXTR) last posted its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.32 EPS for the quarter, topping the consensus estimate of $0.29 by $0.03. The business had revenue of $338.55 million for the quarter, compared to analyst estimates of $332.49 million. Extreme Networks had a net margin of 1.30% and a return on equity of 81.88%. Extreme Networks’s quarterly revenue was up 10.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.25 earnings per share. Extreme Networks has set its FY 2027 guidance at 1.280-1.330 EPS and its Q1 2027 guidance at 0.270-0.290 EPS. As a group, sell-side analysts anticipate that Extreme Networks will post 0.53 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on EXTR shares. Lake Street Capital boosted their price target on Extreme Networks from $25.00 to $34.00 and gave the stock a “buy” rating in a research report on Monday, June 15th. B. Riley Financial reaffirmed a “buy” rating on shares of Extreme Networks in a research report on Thursday, April 30th. Weiss Ratings upgraded Extreme Networks from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, July 6th. Wall Street Zen downgraded Extreme Networks from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Finally, Bank of America increased their target price on Extreme Networks from $28.00 to $33.00 and gave the stock a “buy” rating in a research note on Monday, June 8th. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $32.83.

Insider Activity

In other news, insider Katayoun Motiey sold 30,000 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $31.03, for a total value of $930,900.00. Following the transaction, the insider owned 120,834 shares in the company, valued at approximately $3,749,479.02. This represents a 19.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Edward Meyercord sold 100,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $26.10, for a total transaction of $2,610,000.00. Following the sale, the chief executive officer owned 1,721,902 shares in the company, valued at approximately $44,941,642.20. The trade was a 5.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 422,182 shares of company stock worth $11,905,205. Corporate insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Pacer Advisors Inc. boosted its position in shares of Extreme Networks by 89.1% during the fourth quarter. Pacer Advisors Inc. now owns 14,026 shares of the technology company’s stock valued at $234,000 after buying an additional 6,609 shares during the last quarter. Invesco Ltd. raised its position in Extreme Networks by 16.9% in the 4th quarter. Invesco Ltd. now owns 1,168,651 shares of the technology company’s stock worth $19,458,000 after buying an additional 168,998 shares during the last quarter. Summit Global Investments purchased a new position in Extreme Networks in the 4th quarter worth about $218,000. Vident Advisory LLC lifted its stake in Extreme Networks by 20.8% during the 4th quarter. Vident Advisory LLC now owns 20,256 shares of the technology company’s stock valued at $337,000 after acquiring an additional 3,491 shares during the period. Finally, Mackenzie Financial Corp lifted its stake in Extreme Networks by 105.9% during the 4th quarter. Mackenzie Financial Corp now owns 142,179 shares of the technology company’s stock valued at $2,397,000 after acquiring an additional 73,137 shares during the period. Hedge funds and other institutional investors own 91.05% of the company’s stock.

Extreme Networks Company Profile

Extreme Networks, Inc (NASDAQ: EXTR) is a global provider of end-to-end networking solutions designed to support enterprise, data center, and service provider environments. The company’s product portfolio encompasses high-performance wired and wireless access switches, routers, network security appliances, and software-defined networking (SDN) tools. Driven by a cloud-native management architecture, Extreme’s Intelligent Edge Platform integrates network analytics, automation and orchestration capabilities to help organizations optimize performance, reduce operational complexity and strengthen security.

Since its founding in the mid-1990s and subsequent public listing in 1999, Extreme Networks has expanded its technology footprint through targeted acquisitions.