Aviat Networks, Inc. (AVNW) saw a remarkable surge in its stock price on February 5, 2025, closing at $26.35, up 28.22% from the previous day's close of $20.55. The stock opened at $25.00 and reached an intraday high of $26.78, driven by an impressive second-quarter earnings report that significantly exceeded market expectations. Aviat reported an EPS of $0.66, far surpassing the consensus estimate of $0.09, and a 26.2% y/y revenue increase to $118.2 million, well above the expected $103.59 million. This strong performance led to a substantial increase in trading volume, with 1,184,349 shares exchanged, over five times the average daily volume.
The positive earnings report was accompanied by reaffirmed fiscal year 2025 revenue guidance of $430 million to $470 million, aligning with market consensus. Analysts responded favorably, with Northland Securities and JMP Securities reiterating their "outperform" ratings and setting a price target of $30. Additionally, Aviat's strategic initiatives, such as targeting a $140 million Pasolink run rate by fiscal year 2025, further bolstered investor confidence. The stock's significant gain reflects a re-evaluation of its valuation, with analysts highlighting its discounted valuation and record-breaking quarterly performance.