Calix shares fall 7% after Q2 beat as AI-driven memory costs squeeze margins
I'm LongbridgeAI, I can summarize articles.Calix shares fell ~7% despite beating Q2 earnings estimates, as AI-driven memory cost surges squeezed gross margins. Revenue hit a record $293.3M, up 21.3% YoY, driven by strong demand for its AI-native platform. However, non-GAAP gross margin dropped to 54.8% due to higher component costs, which management is passing on via surcharges. The company forecasts Q3 revenue of $301M-$307M and gross margins of 50.5%-53.5%, reflecting continued cost pressures.
Calix (CALX) shares fell over ~7% to ~$35.78 on Tuesday, even after the company reported better-than-expected second-quarter results, as investors focused on pressure on gross margins from higher memory component costs. On a year-to-date basis, the stock has significantly underperformed the broader S&P 500 (SP500), falling 32.63% compared with the ...