Ubiquiti Shares Surge 25% on Stellar Earnings Beat

Ubiquiti Inc. (UI) skyrocketed 25.7% in early trading after delivering a fourth-quarter earnings blowout. The wireless broadband equipment Maker posted $759.2 million in revenue—a 49.6% year-over-year surge—while adjusted EPS more than doubled to $3.54. Both figures demolished analyst estimates.

The company's minimalist approach to investor relations, including no earnings calls, hasn't deterred market enthusiasm. Founder-CEO Robert Pera's 93% ownership stake appears to reinforce confidence in the business direction. With free cash FLOW hitting $628 million for the fiscal year, Ubiquiti aggressively reduced pandemic-era inventory buildup debt.

At 43 times earnings, valuation concerns linger. But today's growth metrics suggest the premium may be warranted if execution continues. The stock's trajectory mirrors the 'growth-at-reasonable-price' thesis favored by many tech investors.