The 10-second takeaway
For the quarter ended March 31 (Q1), Synchronoss Technologies beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins shrank, net margins dropped.
Synchronoss Technologies booked revenue of $78.3 million. The 12 analysts polled by S&P Capital IQ expected net sales of $76.6 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $64.6 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 $0.28. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. Non-GAAP EPS of $0.28 for Q1 were 7.7% higher than the prior-year quarter's $0.26 per share. GAAP EPS of $0.01 for Q1 were 93% lower than the prior-year quarter's $0.14 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 59.0%, 330 basis points better than the prior-year quarter. Operating margin was 7.4%, 420 basis points worse than the prior-year quarter. Net margin was 0.6%, 790 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $81.9 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $341.9 million. The average EPS estimate is $1.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 449 members out of 475 rating the stock outperform, and 26 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Synchronoss Technologies 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 Synchronoss Technologies is outperform, with an average price target of $34.09.
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