Latest news with #AnterixInc
Yahoo
28-03-2025
- Business
- Yahoo
Why Is Anterix Inc (ATEX)Surging In 2025?
We recently published a list of . In this article, we are going to take a look at where Anterix Inc (NASDAQ:ATEX) stands against other telecom stocks that are surging in 2025. The telecom sector has seen many ups and downs in the past few years. Post-COVID, these stocks declined even more due to the inflation wave and the subsequent interest rate hikes. Telecommunication companies usually have significant debt on their balance sheets due to infrastructure CapEx, and they were among the hardest hit. However, rates are now slowly coming down, and these stocks are also starting to bottom out and turn a corner. Many telecom stocks are still profitable and pay dividends. Falling bond yields are making them even more attractive. It's a good idea to keep tabs on which telecom stocks are spearheading the gains so far this year. For this article, I screened the best-performing telecom stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A technician working on an aerial view of a critical infrastructure, emphasizing the importance of the company's utility services. Number of Hedge Fund Holders In Q4 2024: 21 Anterix Inc (NASDAQ:ATEX) is a wireless communications company that specializes in private broadband networks for key infrastructure sectors. The stock is up significantly so far in 2025 as Anterix initiated a strategic review process after receiving inbound interest from potential buyers or partners. This development has fueled speculation about a potential merger or acquisition. Moreover, Anterix reported a net profit of $7.7 million for Q3 FY2025. In comparison, net profit was $0.3 million in the year-ago quarter. The company also received a $34 million payment from Oncor Electric Delivery Company in January 2025. Plus, Anterix announced the AnterixAccelerator initiative to accelerate private wireless broadband adoption among utility companies. This program includes a $250 million investment and has already attracted interest from over 15 utilities. The consensus price target of $67 implies 75.67% upside. ATEX stock is up 24.16% year-to-date. Overall, ATEX ranks 4th on our list of telecom stocks that are surging in 2025. While we acknowledge the potential of ATEX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATEX but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
13-02-2025
- Business
- Yahoo
Anterix Inc (ATEX) Q3 2025 Earnings Call Highlights: Strategic Expansion and Cost Efficiency ...
Expansion Agreement: $13.5 million expansion agreement with the Lower Colorado River Authority. Cost Reductions: Identified cost reductions of approximately 20% annually. Share Repurchase Program: Returned approximately $4 million to shareholders in the third quarter. Cash Position: Incremental cash increase of $34 million received at the end of January. Cash on Balance Sheet: Approximately $29 million as of December 31, 2024. Uncollected Contract Proceeds: Approximately $150 million, with $80 million expected by March 31, 2026. Operational Expense Reduction: 20% reduction from annualized run rate from the second quarter. Share Repurchase Year-to-Date: $6.5 million returned to shareholders in fiscal '25, including $4.4 million in the third quarter. Warning! GuruFocus has detected 3 Warning Signs with ATEX. Release Date: February 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Anterix Inc (NASDAQ:ATEX) announced a $13.5 million expansion agreement with the Lower Colorado River Authority, extending broadband coverage to 102 counties in Texas. The company has achieved significant scale, covering 93% of Texas counties with its 900 MHz broadband spectrum. Anterix Inc (NASDAQ:ATEX) has identified key areas for cost reductions, achieving approximately 20% annual savings without compromising operational efficiency. The company returned roughly $4 million to shareholders through a share repurchase program, reflecting confidence in its business strategy. Anterix Inc (NASDAQ:ATEX) is leading the market in private LTE deployments, with 7 customers deploying across 15 states, showcasing its strong ecosystem of 120+ companies. The company's equity value has not significantly changed despite moving closer to a 5x5 MHz offering, suggesting a potential undervaluation. Utilities, a key market for Anterix Inc (NASDAQ:ATEX), are traditionally slow-moving, which may impact the speed of adoption for new initiatives. The strategic review process, while potentially beneficial, introduces uncertainty regarding future partnerships or changes in business strategy. There is still work to be done to move the FCC's proposed rulemaking for the 5x5 MHz expansion to a report and order, which could delay potential benefits. The company faces challenges in pricing and structuring deals to make the transition to 5x5 MHz attractive and feasible for utilities. Q: With the move from 3x3 to 5x5 MHz, your equity value hasn't changed much. Is the interest from outside parties due to the perceived undervaluation of your spectrum? A: Scott Lang, President and CEO, explained that the interest stems from the company's large ecosystem, the transition of customers from lab to field, and the pipeline of opportunities. The 5x5 MHz expansion is seen as an additional advantage, even though the current 3x3 MHz satisfies current demands. The interest comes from both financial and strategic entities, recognizing Anterix's market leadership and financial strength. Q: What motivates utilities to move faster with your industry initiative, given their traditionally slow pace? A: Scott Lang noted that the transition from lab to field has demonstrated the performance and use cases of their spectrum, creating urgency among utilities. The initiative aims to make it easier for utilities to adopt the technology by being aggressive on pricing and offering a frictionless transition. Q: How long does it typically take to move from rate case approval to spectrum licensing? A: Brian McAuley, Chairman Emeritus, stated that there is no single timeline as it varies by utility. Regulatory support is a significant step, and utilities can take different paths based on their options and procurement processes. Q: Can you provide goalposts for pricing your spectrum, considering previous auctions and current market conditions? A: Christopher Guttman-Mccabe, Chief Regulatory and Communications Officer, mentioned that previous auctions like AWS 3 and 600 MHz serve as benchmarks. Anterix has room to be creative with pricing, given its current market cap and the potential value to shareholders and utilities. Q: For counties with existing 3x3 MHz deals, will customers automatically get access to 5x5 MHz, and will there be incremental payments? A: Scott Lang indicated that there would likely be demand for the 5x5 MHz for strategic reasons, and there would be negotiations for its value. The pricing specifics will be determined when the time comes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
