Aviat Networks (AVNW) AI Stock Analysis

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Aviat Networks

(NASDAQ:AVNW)

Rating:54Neutral

Price Target:

$21.50

▼(-6.36% Downside)

Aviat Networks' overall score is influenced by its mixed financial performance and bearish technical indicators. While positive developments emerged from the earnings call, valuation concerns with a high negative P/E ratio and liquidity issues weigh heavily on the score.

Positive Factors

Guidance Stability

The Company remains on track to FY25 guidance, indicating stability in its operations.

Market Position

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-Side Risks

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

$292.40M

Dividend YieldN/A

Average Volume (3M)93.60K

Price to Earnings (P/E)―

Beta (1Y)0.85

Revenue Growth12.39%

EPS Growth-123.62%

CountryUS

Employees909

SectorTechnology

Sector Strength86

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.61

Shares Outstanding12,735,328

10 Day Avg. Volume117,868

30 Day Avg. Volume93,600

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.92

Enterprise Value/Revenue0.62

Enterprise Value/Gross Profit1.94

Enterprise Value/Ebitda29.53

Forecast

1Y Price Target

$28.50

Price Target Upside24.13% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

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:Aug 27, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed view with significant achievements in EBITDA and EPS growth, yet faced challenges with international revenue decline and tariff concerns. The company is actively working on mitigating tariff impacts, and there is a cautious optimism about upcoming projects and market conditions.

Q3-2025 Updates

Positive Updates

Record Adjusted EBITDA

Aviat Networks reported a record adjusted EBITDA of $14.9 million, up 17% year-over-year, marking the second consecutive quarter of record quarterly adjusted EBITDA.

Non-GAAP EPS Increase

Non-GAAP EPS was reported at $0.88, representing a 13% increase year-over-year.

North America Revenue Growth

North American revenue grew by $5 million or 11% from the same period last year, driven by growth in private networks.

Improved Gross Margins

Gross margins improved to 34.9% GAAP and 35.8% non-GAAP compared to the previous year, aided by regional and software mix.

Negative Updates

Decline in International Revenue

International revenues decreased by $3.2 million or 5% from the same period last year, impacted by a strong comparison quarter in APAC.

Tariff Concerns

Potential exposure to tariffs could impact up to 2-2.5% of COGS, although Aviat is working to mitigate the impact alongside suppliers and contract manufacturers.

Muted Activity in Africa

The African market remains currency constrained, leading to a roughly flat environment, with limited improvement expected until interest rates moderate.

Company Guidance

During Aviat Networks' third-quarter fiscal 2025 earnings call, the company provided guidance indicating that they expect to meet the fiscal year 2025 revenue and EBITDA consensus estimates, maintaining their previously issued annual guidance range of $430 million to $470 million. The company's performance was marked by a total revenue of $112.6 million, a non-GAAP gross margin of 35.8%, and a record adjusted EBITDA of $14.9 million, which was a 17% increase from the previous year. Aviat also reported non-GAAP earnings per share of $0.88, up 13% year-over-year. The management highlighted their disciplined operating model and strategic efforts to mitigate the impact of tariffs, aiming to remain margin neutral. They also noted that the U.S. Tier 1 capital expenditure cycle has likely bottomed, with expectations for demand to pick up in a couple of quarters. Additionally, Aviat is leveraging its U.S. manufacturing footprint as a potential advantage in light of the tariff landscape.

Aviat Networks Financial Statement Overview

Summary

Aviat Networks presents a mixed financial landscape. Despite positive revenue growth, profitability margins are under pressure with a negative net profit margin. The balance sheet shows stability with manageable leverage, though recent losses are concerning. Cash flow challenges highlight potential liquidity issues.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	433.13M	408.08M	344.43M	302.96M	274.91M	238.64M
Gross Profit	139.49M	144.73M	122.38M	109.23M	102.61M	84.70M
EBITDA	9.16M	28.26M	33.81M	33.45M	27.48M	12.57M
Net Income	-3.41M	10.76M	10.17M	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 Price22.96

Price Trends

50DMA

23.00

Negative

100DMA

21.45

Positive

200DMA

20.10

Positive

Market Momentum

MACD

0.12

Negative

RSI

53.37

Neutral

STOCH

65.52

Neutral

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 22.96 is above the 20-day moving average (MA) of 22.14, below the 50-day MA of 23.00, and above the 200-day MA of 20.10, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 65.52 is Neutral, 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILT	69 Neutral	$536.99M	23.99	7.49%	―	19.67%	12.32%
CRNT	66 Neutral	$180.34M	13.25	8.61%	―	5.06%	29.66%
Sector *	61 Neutral	$35.48B	7.70	-10.11%	1.88%	8.73%	-9.23%
AUDC	57 Neutral	$283.39M	20.87	7.32%	3.94%	-0.93%	3.10%
INSG	55 Neutral	$185.48M	37.57	111.75%	―	-10.99%	―
AVNW	54 Neutral	$292.40M	―	-1.32%	―	12.39%	-123.62%
CLFD	51 Neutral	$450.35M	1,812.22	0.07%	―	5.72%	―

* Technology Sector Average

Performance Comparison

AVNW

Aviat Networks

22.96

-3.88

-14.46%

AUDC

Audiocodes

9.64

-0.22

-2.23%

CRNT

Ceragon Networks

2.03

-0.91

-30.95%

CLFD

Clearfield

32.62

-3.62

-9.99%

GILT

Gilat

9.41

4.97

111.94%

INSG

Inseego

12.33

-1.46

-10.59%

Aviat Networks Corporate Events

Executive/Board Changes

Aviat Networks Promotes Gary Croke to Senior VP

Positive

Jul 3, 2025

On July 1, 2025, Aviat Networks, Inc. announced the promotion of Gary Croke to Senior Vice President of Product and Innovation. This move includes a salary increase, bonus opportunities, and a significant grant of Restricted Stock Units, reflecting the company’s commitment to strengthening its leadership in product development and innovation.

The most recent analyst rating on (AVNW) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Aviat Networks stock, see the AVNW Stock Forecast page.

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: Aug 02, 2025