The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Plantronics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted.
Margins shrank across the board.
Plantronics logged revenue of $197.4 million. The nine analysts polled by S&P Capital IQ expected net sales of $186.3 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $183.2 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 $0.73. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.66 for Q3 were 7.0% lower than the prior-year quarter's $0.71 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 51.8%, 70 basis points worse than the prior-year quarter. Operating margin was 18.5%, 190 basis points worse than the prior-year quarter. Net margin was 14.3%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $192.3 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $750.3 million. The average EPS estimate is $2.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 127 members out of 136 rating the stock outperform, and nine members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Plantronics 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 Plantronics is outperform, with an average price target of $41.00.
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