Calix Inc (NYSE:CALX): When Will It Breakeven?

Calix Inc’s (NYSE:CALX): Calix, Inc., together with its subsidiaries, develops, markets, and sells software platforms, systems, and software for fiber- and copper-based network architectures that enable communications service providers (CSPs) to access networks. With the latest financial year loss of -US$83.03m and a trailing-twelve month of -US$61.44m, the US$410.58m market-cap alleviates its loss by moving closer towards its target of breakeven. Many investors are wondering the rate at which CALX will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for CALX, its year of breakeven and its implied growth rate.

View out our latest analysis for Calix

According to the industry analysts covering CALX, breakeven is near. They expect the company to post a final loss in 2018, before turning a profit of US$4.60m in 2019. So, CALX is predicted to breakeven approximately a few months from now. In order to meet this breakeven date, I calculated the rate at which CALX must grow year-on-year. It turns out an average annual growth rate of 140.90% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

NYSE:CALX Past Future Earnings June 24th 18
NYSE:CALX Past Future Earnings June 24th 18

Given this is a high-level overview, I won’t go into details of CALX’s upcoming projects, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing I’d like to point out is that CALX has managed its capital judiciously, with debt making up 21.73% of equity. This means that CALX has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on CALX, so if you are interested in understanding the company at a deeper level, take a look at CALX’s company page on Simply Wall St. I’ve also compiled a list of pertinent factors you should further examine:

  1. Historical Track Record: What has CALX’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Calix’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.