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.
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 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.
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.
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.
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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