
Harmonic (HLIT) Stock Forecast & Price Target
Harmonic (HLIT) Analyst Ratings
Bulls say
Harmonic Inc has demonstrated strong financial performance, highlighted by record Broadband sales growth of 48% year-over-year and 18% quarter-over-quarter, largely driven by a substantial revenue contribution from Comcast. The company benefits from a solid leadership position in Cable Access, securing 127 customers and a robust pipeline of potential engagements, which bodes well for future revenue generation. Despite some fluctuations in order volumes, the expectation of gradual operating margin expansion, an improvement in gross margins, and operational efficiencies suggest a favorable financial outlook for Harmonic in the evolving broadband and video delivery markets.
Bears say
Harmonic Inc. faces a negative outlook due to its 1Q25 Broadband guidance of $85 million, which is 19% below consensus estimates, indicating a significant decline driven by customer inventory challenges. The total backlog and deferred revenue of $496 million at the end of 4Q24 reflects a concerning year-over-year decrease of 24% and a quarter-over-quarter decline of 15%, highlighting a potential downturn in demand. Additionally, reduced revenue and earnings per share guidance for 1Q25, significantly below market expectations, exacerbates concerns regarding the company’s ability to navigate integration challenges in a transitioning network architecture, particularly with the delayed rollout of unified DOCSIS 4.0 solutions.
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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