Will These Numbers from Harmonic Be Good Enough for You?

Harmonic (Nasdaq: HLIT  ) is expected to report Q4 earnings on Jan. 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Harmonic's revenues will wither -4.2% and EPS will wither -33.3%.

The average estimate for revenue is $137.5 million. On the bottom line, the average EPS estimate is $0.08.

Revenue details
Last quarter, Harmonic booked revenue of $136.7 million. GAAP reported sales were 1.6% lower than the prior-year quarter's $138.9 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.07. GAAP EPS were -$0.07 for Q3 against $0.03 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 43.8%, 230 basis points worse than the prior-year quarter. Operating margin was -0.7%, 350 basis points worse than the prior-year quarter. Net margin was -6.0%, 860 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $534.6 million. The average EPS estimate is $0.23.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 286 members out of 305 rating the stock outperform, and 19 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Harmonic a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harmonic is hold, with an average price target of $5.32.

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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 position in any of the stocks mentioned. 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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  • Report this Comment On January 26, 2013, at 12:56 AM, JSKennedy wrote:

    So what is the point of this note? Is anyone else getting tired of the HLIT bashing that goes on here? Glad I didn't listen to the advice here six months ago.

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