Websense (Nasdaq: WBSN) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Websense beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share increased.

Gross margins contracted, operating margins increased, net margins grew.

Revenue details
Websense reported revenue of $90.4 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $89.1 million on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $92.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.43. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.23 for Q3 were 15% higher than the prior-year quarter's $0.20 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 83.4%, 40 basis points worse than the prior-year quarter. Operating margin was 15.3%, 40 basis points better than the prior-year quarter. Net margin was 9.4%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $92.4 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $360.9 million. The average EPS estimate is $1.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 83 members out of 103 rating the stock outperform, and 20 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Websense a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Websense is hold, with an average price target of $18.39.

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