
Harmonic (HLIT) Stock Forecast & Price Target
Harmonic (HLIT) Analyst Ratings
Bulls say
Harmonic Inc. demonstrated a notable net gross margin (NGGM) of 54.4%, reflecting improvement year-over-year and quarter-over-quarter, driven by a favorable product mix of higher-margin broadband solutions. The company is poised for steady operating margin expansion alongside top-line growth, supported by a growing portfolio of contracts with cable operators and an anticipated increase in revenue in upcoming quarters. Furthermore, increased investments from telecommunications companies in fiber-to-the-home (FTTH) and fixed wireless broadband are expected to enhance demand for Harmonic's offerings, positioning the company favorably for future growth.
Bears say
Harmonic Inc. has experienced a significant decline in non-Comcast revenue, which fell 15% year-over-year to $81 million, likely influenced by setbacks from Charter communications, despite some anticipation of future growth from new clients. The company reported a book-to-bill ratio of 0.9x, a decrease from 1.1x in the previous quarter, indicating reduced order momentum, while total backlog and deferred revenue also saw a decline of 15% year-over-year, totaling $495 million. Additionally, the 4Q revenue guidance for both the Broadband segment at $90 million (down 8% below consensus) and the Video segment at $50 million (below expectations) reflects ongoing challenges, particularly with the transition from hardware to software/SaaS, which is pressuring overall financial performance.
This aggregate rating is based on analysts' research of Harmonic and is not a guaranteed prediction by Public.com or investment advice.
Harmonic (HLIT) Analyst Forecast & Price Prediction
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