The 10-second takeaway
For the quarter ended Dec. 31 (Q2), ShoreTel missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share grew.
Margins dropped across the board.
ShoreTel logged revenue of $74.6 million. The eight analysts polled by S&P Capital IQ foresaw sales of $77.9 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $58.0 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 -$0.04. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS were -$0.18 for Q2 versus -$0.05 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 58.8%, 660 basis points worse than the prior-year quarter. Operating margin was -12.5%, 950 basis points worse than the prior-year quarter. Net margin was -13.9%, 950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $78.0 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $317.0 million. The average EPS estimate is -$0.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 133 members out of 141 rating the stock outperform, and eight members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give ShoreTel a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ShoreTel is outperform, with an average price target of $6.86.
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