The 10-second takeaway
For the quarter ended Sep. 30 (Q1), ShoreTel beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share increased.
Margins shrank across the board.
ShoreTel tallied revenue of $75.0 million. The seven analysts polled by S&P Capital IQ looked for revenue of $72.7 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $53.9 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 -$0.04. The six earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.14 for Q1 compared to -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.2%, 470 basis points worse than the prior-year quarter. Operating margin was -9.9%, 210 basis points worse than the prior-year quarter. Net margin was -10.7%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $77.6 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $316.1 million. The average EPS estimate is -$0.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 133 members out of 141 rating the stock outperform, and eight members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give ShoreTel a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ShoreTel is buy, with an average price target of $7.17.
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