On Feb. 8, McAfee (NYSE:MFE) released fourth-quarter earnings for the period ended Dec. 31.
- Revenues grew 20.5% with both the corporate and retail divisions growing at roughly the same pace.
- On the flip side, GAAP operating income decreased 24% to $37.1 million, largely due to increased spending in marketing and sales and "SEC and compliance costs."
- Management estimates 2007 GAAP EPS of $0.97 to $1.17, the average of which would be a 27% jump over full-year 2006.
- Motley Fool CAPS players are split on whether MFE will under- or outperform the S&P 500.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$305.2 |
$253.3 |
20.5% |
|
Net Profit |
$35.0 |
$38.6 |
(9.3%) |
|
EPS |
$0.21 |
$0.23 |
(8.7%) |
|
Diluted Shares |
162.9 |
171.4 |
(5.0%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
87.8% |
80.9% |
7.0 |
|
Operating Margin |
12.2% |
19.2% |
(7.0) |
|
Net Margin |
11.5% |
15.2% |
(3.8) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,240.2 |
$1,257.0 |
(1.3%) |
|
Accounts Rec. |
$170.7 |
$158.7 |
7.5% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$35.6 |
$34.7 |
2.6% |
|
Long-Term Debt* |
$137.5 |
$142.6 |
(3.6%) |
Learn the ways of the balance sheet.
Related Companies:
- Check Point Software Technology (NASDAQ:CHKP)
- Trend Micro (NASDAQ:TMIC)
- Novell (NASDAQ:NOVL)
- VASCO Data Security International (NASDAQ:VDSI)
Related Foolishness:
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