The 10-second takeaway
For the quarter ended March 31 (Q1), Sourcefire missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share stayed the same. GAAP earnings per share didn't move.
Gross margins increased, operating margins dropped, net margins dropped.
Sourcefire booked revenue of $56.2 million. The 17 analysts polled by S&P Capital IQ predicted a top line of $57.4 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $46.3 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 $0.11. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. Non-GAAP EPS of $0.11 were the same as the prior-year quarter. GAAP EPS of $0.00 were the same as 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 76.5%, 10 basis points better than the prior-year quarter. Operating margin was -2.4%, 270 basis points worse than the prior-year quarter. Net margin was 0.0%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $62.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $278.5 million. The average EPS estimate is $0.96.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 185 rating the stock outperform, and 43 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Sourcefire a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sourcefire is outperform, with an average price target of $60.50.
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