Acme Packet (Nasdaq: APKT ) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Acme Packet met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped to zero.
Margins contracted across the board.
Acme Packet tallied revenue of $67.6 million. The 19 analysts polled by S&P Capital IQ predicted revenue of $67.3 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $79.7 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 $0.13. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.20.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.1%, 250 basis points worse than the prior-year quarter. Operating margin was -0.2%, 2,850 basis points worse than the prior-year quarter. Net margin was -0.2%, 1,780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $74.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $296.5 million. The average EPS estimate is $0.72.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 498 members out of 569 rating the stock outperform, and 71 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 120 give Acme Packet a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Acme Packet is hold, with an average price target of $30.19.
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