Smart Technologies Misses on the Top and Bottom Lines

Smart Technologies (Nasdaq: SMT  ) reported earnings on Nov. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Smart Technologies missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew.

Gross margins dropped, operating margins shrank, net margins grew.

Revenue details
Smart Technologies logged revenue of $170.8 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $179.7 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $210.3 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 $0.10. The seven earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.11 for Q2 were much higher than the prior-year quarter's $0.00 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 44.8%, 180 basis points worse than the prior-year quarter. Operating margin was 8.6%, 820 basis points worse than the prior-year quarter. Net margin was 8.1%, 780 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $158.3 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $653.7 million. The average EPS estimate is $0.32.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 69 rating the stock outperform, and 11 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Smart Technologies 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 Smart Technologies is hold, with an average price target of $2.78.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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