Aviat Networks (AVNW) AI Stock Analysis

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Aviat Networks

(NASDAQ:AVNW)

Rating:70Outperform

Price Target:

$26.00

▲(8.60%Upside)

Aviat Networks shows strong earnings performance and positive technical momentum, which are significant strengths. However, financial performance is mixed with profitability challenges, and valuation concerns persist due to a negative P/E ratio. Tariff impacts and international revenue declines also weigh on the outlook.

Positive Factors

Acquisition Strategy

Synergies from the acquisition are fully realized, contributing to future earnings potential.

Financial Performance

Shares trading at only 6.5x the new FY26 EPS estimate offer an attractive entry point.

Market Positioning

Aviat Networks designs and sells advanced wireless networking products, which positions it well in the market.

Negative Factors

Macro Environment

There is increased noise in the macro environment, and a steep quarter-over-quarter ramp is needed to hit guidance.

Supply Constraints

Global tariffs are cited as a potential risk that could create supply-side constraints, affecting the lower end of the company's guidance range.

Aviat Networks (AVNW) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$304.88M

Dividend YieldN/A

Average Volume (3M)86.49K

Price to Earnings (P/E)―

Beta (1Y)0.81

Revenue Growth12.39%

EPS Growth-123.62%

CountryUS

Employees909

SectorTechnology

Sector Strength86

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.88

Shares Outstanding12,735,328

10 Day Avg. Volume95,226

30 Day Avg. Volume86,490

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)1.03

Price to Sales (P/S)0.00

P/FCF Ratio-32.00

Enterprise Value/Market Cap1.18

Enterprise Value/Revenue0.21

Enterprise Value/Gross Profit2.58

Enterprise Value/Ebitda6.21

Forecast

1Y Price Target

$30.00

Price Target Upside25.31% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Aviat Networks Business Overview & Revenue Model

Company DescriptionAviat Networks, Inc. provides wireless transport solutions worldwide. It offers a comprehensive suite of products and localized professional and support services enabling customers to simplify their networks and lives. The company's products and solutions include wireless transmission systems for microwave and millimeter wave networking applications. It serves communications service providers and private network operators, including state/local government, utility, federal government, and defense organizations. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. was incorporated in 2006 and is headquartered in Austin, Texas.

How the Company Makes MoneyAviat Networks generates revenue through the sale of its wireless transport products and related services. The company's primary revenue streams include the sale of microwave networking equipment and the provision of support and maintenance services. Aviat Networks also earns revenue from offering network design, installation, and optimization services. Significant partnerships with telecommunications providers and government entities are crucial to its earnings, as these collaborations drive demand for its advanced networking solutions. Additionally, Aviat Networks capitalizes on emerging trends in telecommunications, such as 5G deployment, which further bolsters demand for its high-capacity and reliable transmission solutions.

Aviat Networks Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q3-2025)

% Change Since: 21.71%|

Next Earnings Date:Aug 20, 2025

Earnings Call Sentiment Neutral

Aviat Networks reported strong financial performance, including record adjusted EBITDA and growth in North American revenues. However, international revenue declined, and there are concerns about potential costs due to tariffs and muted demand in certain regions.

Q3-2025 Updates

Positive Updates

Record Adjusted EBITDA

Aviat Networks reported a record adjusted EBITDA of $14.9 million, representing a 17% increase compared to the previous year.

Growth in Non-GAAP EPS

The non-GAAP EPS increased by 13% year-over-year, reaching $0.88.

Successful ProVision Plus Sales

Initial sales of the ProVision Plus software to Pasolink customers were reported, marking progress in servicing Tier 1 and larger mobile service provider customers.

Strong Performance in North America

North American revenues increased by $5 million or 11% year-over-year, driven by growth in private networks.

Negative Updates

International Revenue Decline

International revenues decreased by $3.2 million or 5% compared to the same period last year, largely due to a challenging comparison with APAC's record performance in the prior year.

Tariff Impact Concerns

Concerns about the impact of tariffs on costs, with potential exposure estimated at 2% to 2.5% of COGS over the next few quarters.

Muted Demand in Africa

The African market remains subdued, largely due to currency constraints and high interest rates.

Company Guidance

During Aviat Networks' third quarter fiscal 2025 earnings call, the company reported total revenues of $112.6 million and a non-GAAP gross margin of 35.8%. The adjusted EBITDA reached a record $14.9 million, representing a 17% increase compared to the same period last year. The non-GAAP earnings per share (EPS) were $0.88, up 13% year-over-year. North American revenues saw an increase, particularly in private networks, contributing $49.4 million, an 11% rise from the previous year. International revenues, however, decreased by 5% to $63.2 million due to tough comparables in the APAC region. Gross margins improved due to a favorable regional and software mix, with the GAAP gross margin at 34.9%. Operating expenses were effectively managed, with non-GAAP operating expenses at $27.2 million. The company maintained its guidance for fiscal year 2025, aligning with full-year consensus estimates on revenue and EBITDA, despite uncertainties related to tariffs and the macroeconomic environment.

Aviat Networks Financial Statement Overview

Summary

Aviat Networks presents a mixed financial landscape. While revenue growth is positive, profitability margins are under pressure. The balance sheet remains stable with manageable leverage, but recent losses impact overall performance. Cash flow challenges need addressing to enhance liquidity and operational efficiency.

Income Statement

Positive

Aviat Networks shows a mixed performance with a declining gross profit margin over the years, reaching 32.2% in TTM. The net profit margin is negative at -0.8% in TTM, indicating operational challenges. However, revenue growth is positive, with a 6.1% increase in TTM compared to the previous year. EBIT margin decreased to 1.3%, while EBITDA margin stands at 2.9%, suggesting room for operational efficiency improvements.

Balance Sheet

Positive

The company maintains a moderate debt-to-equity ratio of 0.30, indicating manageable leverage. Return on Equity is concerning at -1.3% in TTM, reflecting recent net losses. The equity ratio is strong at 40.8%, showing financial stability with a solid equity base compared to total assets.

Cash Flow

Neutral

Cash flow metrics show challenges, with free cash flow turning negative in TTM. The operating cash flow to net income ratio is unfavorable, and free cash flow to net income ratio indicates inefficiencies. Free cash flow growth is negative, signaling potential liquidity issues.

Breakdown	TTM	Jun 2024	Jun 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	433.13M	408.08M	346.59M	302.96M	274.91M	238.64M
Gross Profit	139.49M	144.73M	124.17M	109.23M	102.61M	84.70M
EBITDA	12.77M	28.26M	33.81M	33.45M	27.48M	12.57M
Net Income	-3.41M	10.76M	11.53M	21.16M	110.14M	257.00K
Balance Sheet
Total Assets	628.34M	535.22M	364.50M	323.90M	297.65M	179.80M
Cash, Cash Equivalents and Short-Term Investments	49.43M	64.62M	22.24M	47.77M	47.94M	41.62M
Total Debt	77.49M	52.18M	2.75M	2.92M	3.99M	12.75M
Total Liabilities	372.22M	279.34M	144.40M	122.15M	114.32M	111.12M
Stockholders Equity	256.12M	255.88M	220.10M	201.75M	183.34M	68.68M
Cash Flow
Free Cash Flow	-7.99M	27.86M	-6.98M	997.00K	14.45M	12.88M
Operating Cash Flow	3.52M	30.54M	-1.64M	2.79M	17.30M	17.49M
Investing Cash Flow	-26.53M	-35.22M	-11.95M	-7.79M	-2.85M	-4.61M
Financing Cash Flow	17.01M	48.70M	-681.00K	-4.87M	-8.05M	-2.54M

Aviat Networks Technical Analysis

Technical Analysis Sentiment

Positive

Last Price23.94

Price Trends

50DMA

20.68

Positive

100DMA

20.42

Positive

200DMA

19.73

Positive

Market Momentum

MACD

0.82

Negative

RSI

69.77

Neutral

STOCH

95.74

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNW, the sentiment is Positive. The current price of 23.94 is above the 20-day moving average (MA) of 22.64, above the 50-day MA of 20.68, and above the 200-day MA of 19.73, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 95.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVNW.

Aviat Networks Risk Analysis

Aviat Networks disclosed 34 risk factors in its most recent earnings report. Aviat Networks reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Aviat Networks Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILT	73 Outperform	$400.26M	28.82	4.79%	―	13.49%	-39.61%
CRNT	71 Outperform	$217.66M	9.55	15.02%	―	11.94%	377.86%
AVNW	70 Outperform	$304.88M	―	-1.32%	―	12.39%	-123.62%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
AUDC	62 Neutral	$289.38M	17.30	9.33%	3.69%	-1.13%	61.49%
CLFD	59 Neutral	$587.68M	―	-0.68%	―	-2.14%	44.13%
INSG	52 Neutral	$128.31M	25.31	111.75%	―	1.60%	―

* Technology Sector Average

Performance Comparison

AVNW

Aviat Networks

23.94

-3.73

-13.48%

AUDC

Audiocodes

9.75

-0.09

-0.91%

CRNT

Ceragon Networks

2.45

-0.04

-1.61%

CLFD

Clearfield

42.49

6.26

17.28%

GILT

Gilat

7.02

2.62

59.55%

INSG

Inseego

8.55

-4.26

-33.26%

Aviat Networks Corporate Events

Executive/Board Changes

Aviat Networks Board Member Resignation Announced

Neutral

Apr 22, 2025

On April 17, 2025, Aviat Networks announced that Asako Aoyama, a member of their Board of Directors, would resign effective April 22, 2025. This resignation may impact the company’s governance and strategic direction, affecting stakeholders’ interests.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025