Canada's Vecima Networks Q4 adjusted EPS slightly beats; 2026 revenue outlook lifted

Vecima Networks

24/09/2026 11:10

Overview
Canada broadband access provider's Q4 fiscal revenue rose 36% yr/yr to a record high
Adjusted EPS for Q4 fiscal 2026 beat analyst expectations
Company raised calendar 2026 revenue growth outlook to 27%-32% yr/yr

Outlook
Vecima raises calendar 2026 revenue growth outlook to 27%-32% from 22.5%-30%
Company expects fiscal 2027 revenue to grow 30%-35% over fiscal 2026
Vecima anticipates adjusted EBITDA margin of about 20% in calendar 2026 and fiscal 2027

Result Drivers
ENTRA DAA PRODUCTS - Record sales and increased shipments of Entra DAA products, including ERM3xx Remote-PHY modules and Entra SF-4X Optical platform, drove Q4 results
VCMTS CLOUD SOLUTION - Progress in trials and commercialization of vCMTS cloud-based DOCSIS core solution, including new Tier 1 customer agreements, contributed to Q4 performance
CONTENT DELIVERY & STORAGE - Double-digit revenue growth in Content Delivery and Storage segment, supported by managed IPTV uptake and targeted Dynamic Ad Insertion deployments

Company press release: ID:nBw7rlXmxa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$91 mln
C$79.10 mln (1 Analyst)
Q4 Adjusted EPS
Beat
C$0.21
C$0.20 (3 Analysts)
Q4 EPS
 
C$0.22
 
Q4 Net Income
 
C$5.4 mln
 
Q4 Adjusted EBITDA
 
C$18.9 mln
 
Q4 Gross Margin
 
45.4%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Vecima Networks Inc is C$19.50, about 56% above its September 23 closing price of C$12.50
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Sept 23 - Cintas' Q1 revenue, adj EPS beat estimates, outlook raised

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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.)