Polycom (Nasdaq: PLCM ) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Polycom met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Polycom booked revenue of $358.5 million. The 14 analysts polled by S&P Capital IQ anticipated sales of $360.9 million on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $365.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.03 for Q2 were 81% lower than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.7%, 70 basis points worse than the prior-year quarter. Operating margin was 5.6%, 580 basis points worse than the prior-year quarter. Net margin was 1.8%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $366.4 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.48 billion. The average EPS estimate is $0.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 201 members out of 221 rating the stock outperform, and 20 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Polycom a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polycom is outperform, with an average price target of $14.42.
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