Savvy Trades and Investments

[abh3vt]

Would much rather see CRNT provide conservative guidance and then beat and raise later. The guidance for FY24 is still very solid at the midpoint (~14%). They spoke of their ability to increase margins and achieving operating margins at better than 10%. That excludes interest expense, and they might have a little bit of a headwind there over the first half of 2024 in adjusted pretax (but I'd guess they still show y/y growth.) They are setting up for a very nice 2H of 2024 given the full integration of the recent acquisition (Siklu), and the beginning of the massive $150MM contract. I think the 0.30 estimate is a bit aggressive for FY24, but the odds of achieving that have improved with the announcement of the recent contract.