Calix Inc (NYSE:CALX) continues to be an excellent 5G company that quietly reports strong financial results and rewards investors with stellar stock gains. CALX stock is up by an eye-watering 485% year-over-year and an impressive 48.5% since the start of 2021.
I last wrote about Calix stock back in November, when it was trading at $23.94. Since then, it has climbed by 85%. CALX stock has been on fire over the last few quarters, and there’s every reason to believe the momentum will continue throughout 2021.
In the fourth quarter of 2020, the telecommunications equipment manufacturer announced results that broke a number of its quarterly records and were well above its financial guidance.
As a result, Calix Inc is in the strongest financial position in its history, and it’s poised to experience significant growth over the coming quarters.
Chart courtesy of StockCharts.com
CALX Stock Overview
Calix provides the cloud and software platforms, systems, and services required to deliver the unified access network in the U.S. and around the world. (Source: “Calix, Inc. (CALX),” Yahoo! Finance, last accessed March 11, 2021.)
The company’s platforms help communication service providers (CSPs) deliver a range of services, from basic voice and data to advanced broadband services.
Calix Inc has been making an effort to diversify its customer base, adding 100 new customers per year. As a result, no customer accounts for more than 10% of its revenue.
The company focuses on CSP access networks, the portion of the network that governs available bandwidth, and determines the range and quality of services that can be offered to subscribers.
Calix’s offerings include “Calix Cloud,” “Experience eXtensible Operating System,” and “Access eXtensible Operating System.”
Record Quarterly Results
For the fourth quarter of 2020, ended December 31, 2020, Calix reported record revenue of $170.0 million, a 41% increase over the $120.1 million from the same prior-year period. (Source: “Letter to Shareholders,” Calix Inc, January 27, 2021.)
The company’s domestic revenue in the fourth quarter, which was 85% of its total revenue, increased by 41% from a year earlier. Its international revenue, which was 15% of its total revenue in the fourth quarter, increased by 43% from the year-ago quarter.
Calix Inc’s net income came in at $24.1 million ($0.39 per share), a huge improvement over the fourth-quarter 2019 net income of $497,000 ($0.01 per share). Its adjusted net income was $29.4 million, 488% higher than the $5.0 million in the same period of the previous year.
Calix Inc ended the fourth quarter with cash and cash equivalents of $80.8 million, compared to $46.8 million at the end of 2019. This was the company’s sixth consecutive quarter of positive operating cash flow.
For the first quarter of 2021, Calix expects to report:
- Revenue in the range of $146.0 to $152.0 million, which, at the midpoint, represents a 47% increase over the $101.6 million in Q1 2020
- Net income between $0.16 and $0.20 per share, up from a Q1 2020 loss of $0.12 per share
- Positive cash flow
Calix stock has been on an amazing trajectory since the middle of 2019, soaring 690%. Despite the strong gains, there are many reasons why investors should keep CALX stock on their radar.
In addition to having a strong balance sheet, Calix Inc reported record quarter quarterly revenue, net income, and operating cash flow. As mentioned earlier, the company is in the strongest financial position in its history.