Fiber connectivity firm Clearfield's Q3 net sales rise; lowers FY outlook

Clearfield

05/08/2026 21:11

Overview
U.S. fiber connectivity firm's fiscal Q3 net sales rose 13% yr/yr, EPS up 38%
Gross margin declined due to inventory charge, partly offset by recoveries and tariff refunds
Company repurchased $0.9 mln in shares, lowers full-year outlook citing demand constraints

Outlook
Clearfield lowers fiscal 2026 net sales outlook to $151 mln-$155 mln
Company expects fiscal 2026 net income per share of $0.14-$0.21
Clearfield sees Q4 net sales at $38 mln-$42 mln and net income per share at $0.00-$0.07

Result Drivers
INVENTORY CHARGE - Gross margin was reduced by a $2.6 mln inventory charge tied to an order the company no longer expects to fulfill
INVENTORY RECOVERIES AND TARIFF REFUNDS - Gross margin benefited from $1.4 mln of inventory recoveries and $655,000 in tariff refunds, though these were partially offset by other inventory provisions
LOWER OPERATING EXPENSES - Operating expenses declined due in part to a $1.7 mln reduction in performance-based compensation accruals

Company press release: ID:nGNX5Wf98F

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.22
 
Q3 Gross Profit
 
$13.9 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Clearfield Inc is $44.50, about 31.9% above its August 4 closing price of $33.74
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 31 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)