DragonWave (Nasdaq: DRWI ) reported earnings on Jan. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q3), DragonWave missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share expanded.
Gross margins shrank, operating margins grew, net margins increased.
DragonWave recorded revenue of $38.5 million. The seven analysts polled by S&P Capital IQ predicted a top line of $40.4 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $11.8 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 -$0.36. The six earnings estimates compiled by S&P Capital IQ forecast -$0.32 per share. GAAP EPS were -$0.36 for Q3 against -$0.23 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 18.6%, 2,230 basis points worse than the prior-year quarter. Operating margin was -36.3%, 4,370 basis points better than the prior-year quarter. Net margin was -36.1%, 3,170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $48.3 million. On the bottom line, the average EPS estimate is -$0.23.
Next year's average estimate for revenue is $151.0 million. The average EPS estimate is -$0.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 252 members out of 265 rating the stock outperform, and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give DragonWave a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DragonWave is underperform, with an average price target of $2.91.
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