How does the deal compare in size and scope to Ceragon’s existing contracts and its historical revenue base?

Size & scope vs. Ceragon’s contract book

The $8 million private‑network modernization contract represents a mid‑tier addition to Ceragon’s pipeline. Historically, the company’s largest deals have been in the $10‑15 million range with Tier‑1 telcos and rail operators, while most of its recurring contracts sit between $3 million and $7 million. At roughly 7‑8 % of the FY‑2024 revenue run‑rate (≈ $120 million) the new utility‑sector project is sizable enough to lift the “other‑revenue” line, but it is not a transformational order‑size like the earlier $12‑million back‑haul agreements that have historically driven a bulk of the top‑line growth.

Trading implications

The contract underscores Ceragon’s strategic push into the EMEA utility market—a higher‑margin, longer‑term recurring‑revenue segment that the company has under‑penetrated to date. Assuming the deal is booked on a cash‑basis, earnings per share (EPS) could be nudged up by 3‑4 % in the next quarter, a modest but positive catalyst that may already be priced in. For traders, the news offers a short‑to‑mid‑term upside opportunity on any pull‑back in the stock; a breakout above the 20‑day SMA (≈ $12.30) with volume could signal the market’s recognition of the incremental margin upside. Conversely, because the deal does not materially shift the revenue base, any upside is likely limited to a 5‑8 % rally unless management follows the announcement with a broader utility‑network guidance upgrade. A prudent play would be to add a modest position on a dip, targeting a 10‑12 % upside with a stop just below the recent low‑volume support at $11.80.