The 10-second takeaway
For the quarter ended Dec. 31 (Q4), BroadSoft met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped.
Margins dropped across the board.
BroadSoft logged revenue of $45.8 million. The 12 analysts polled by S&P Capital IQ expected sales of $45.8 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $40.6 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 $0.47. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. Non-GAAP EPS of $0.47 for Q4 were 24% higher than the prior-year quarter's $0.38 per share. GAAP EPS of $0.17 for Q4 were 11% lower than the prior-year quarter's $0.19 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 81.7%, 290 basis points worse than the prior-year quarter. Operating margin was 18.4%, 250 basis points worse than the prior-year quarter. Net margin was 10.7%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $43.9 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $197.3 million. The average EPS estimate is $1.30.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 38 members out of 134 rating the stock outperform, and 96 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give BroadSoft a green thumbs-up, and 37 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BroadSoft is outperform, with an average price target of $41.50.
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