The 10-second takeaway
For the quarter ended Dec. 30 (Q2), Oplink Communications met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins increased across the board.
Oplink Communications logged revenue of $45.1 million. The five analysts polled by S&P Capital IQ expected sales of $45.0 million on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $43.3 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 $0.24. The four earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS were $0.18 for Q2 against -$0.08 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 36.7%, 590 basis points better than the prior-year quarter. Operating margin was 9.1%, 580 basis points better than the prior-year quarter. Net margin was 7.7%, 1,110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $46.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $184.8 million. The average EPS estimate is $0.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 160 members out of 181 rating the stock outperform, and 21 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Oplink Communications a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oplink Communications is buy, with an average price target of $22.92.
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