Keep Your Eyes on This Stock: EXFO Inc. (NASDAQ:EXFO)

EXFO Inc. (NASDAQ:EXFO) stock identified change of 38.35% away from 52-week low price and recently located move of -25.96% off 52-week high price. It has market worth of $203.21M. EXFO stock has been recorded -1.48% away from 50 day moving average and -2.10% away from 200 day moving average. Moving closer, we can see that shares have been trading -2.72% off 20-day moving average.

On Oct. 9, 2019, EXFO Inc. (NASDAQ:EXFO) (TSX:EXF), the communications industry’s test, monitoring and analytics experts, declared financial results for the fourth quarter and fiscal year ended August 31, 2019.

I am pleased EXFO significantly improved its profitability in fiscal 2019 and surpassed its annual target with adjusted EBITDA of US$25.6 million, while achieving solid growth in sales, bookings and cash flows from operations, said Philippe Morin, EXFO’s Chief Executive Officer. We also fully integrated our transformative acquisition of Astellia to create disruptive solutions that will support our growth objectives.

Based on sound operational discipline, we completed our restructuring plan, bolstered efficiency and maintained our proven innovation capabilities. Overall, I am confident we have assembled the key building blocks to generate long-term growth supported by a highly differentiated offering for fiber, 5G mobility and network virtualization.

Fiscal 2019 Highlights

  • Sales growth. Total sales increased 6.4% to US$286.9 million in fiscal 2019. Service Assurance, Systems and Services (SASS) sales improved 16.2% largely due to a full-year contribution from the Astellia acquisition and multi-million-dollar contract win for EXFO’s network topology and automation solution. Test and Measurement (T&M) sales were up 3.7% year-over-year. Annual sales in Europe, Middle East and Africa (EMEA), Americas, and Asia-Pacific regions increased 9.5%, 6.3% and 1.6%, respectively, in 2019. EXFO’s largest customer accounted for 6.9% of sales in 2019, while the company’s top-three customers represented 18.1%.
  • Bookings growth. Total bookings increased $11.2% year-over-year to US$297.8 million in 2019 for a book-to-bill ratio of 1.04. SASS bookings grew 21.0% due in part to four monitoring orders related to 5G deployments, while T&M bookings improved 8.4% year over-year.
  • IFRS net loss was reduced by 79.8% to US$2.5 million in fiscal 2019 from US$12.3 million in 2018. Adjusted EBITDA, which surpassed the company’s annual profitability target, surged 48.8% to US$25.6 million in 2019 from US$17.2 million in 2018. Cash flows from operations improved 20.0% to US$17.2 million in 2019 from US$14.4 million in 2018.
  • EXFO released several game-changing solutions in fiscal 2019 to accelerate its customers’ network transformations. The company introduced the industry’s first optical fiber multimeter, creating a new testing category that greatly simplifies, accelerates and automates the task of frontline technicians while maximizing quality of fiber links. EXFO expanded its 400G test leadership with a new module featuring an Open Transceiver System that enables compatibility between current and future high-speed transceivers with EXFO’s field and lab test platforms. EXFO released an automated fiber inspection tool for testing polarity, continuity and connector cleanliness on multifiber cables.

The Technology sector company, EXFO Inc. noticed change of 0.00% to $3.68 along volume of 43382 shares in recent session compared to an average volume of 13.58K. The stock observed return of -2.90% in 5 days trading activity. The stock was at -5.64% over one month performance. EXFO’s shares are at 3.66% for the quarter and driving a -3.41% return over the course of the past year and is now at 29.58% since this point in 2018.

The average volatility for the week at 2.27% and for month was at 3.12%. There are 55.22M shares outstanding and 19.16M shares are floated in market. Right now the stock beta is 1.15.

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