The 10-second takeaway
For the quarter ended Dec. 29 (Q3), Black Box beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew.
Gross margins grew, operating margins dropped, net margins grew.
Black Box notched revenue of $252.1 million. The one analyst polled by S&P Capital IQ looked for sales of $244.0 million on the same basis. GAAP reported sales were 8.6% lower than the prior-year quarter's $275.9 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 $0.79. The one earnings estimate compiled by S&P Capital IQ predicted $0.64 per share. GAAP EPS were $0.52 for Q3 versus -$16.12 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 32.4%, 40 basis points better than the prior-year quarter. Operating margin was 5.9%, 220 basis points worse than the prior-year quarter. Net margin was 3.4%, 10,610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $243.3 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $995.3 million. The average EPS estimate is $2.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 67 members out of 79 rating the stock outperform, and 12 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Black Box a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Box is buy, with an average price target of $29.00.
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