The market's actions usually make sense to me, if only in hindsight. But Fools, I'm flummoxed by the 18.6% drubbing C-COR
For the quarter, the company's sales reached $74.4 million, up 25% year over year. Income from continuing operations slid to $8.2 million, from $9.9 million, but that doesn't tell the whole story. When you net out last year's $10.9 million in one-time gains, the firm's fortunes actually improved. More importantly, C-COR swung from a $2.1 million operating loss last year to operating income of $7.7 million this time around.
C-COR, among a small cadre of companies such as OpenTV
C-COR's forward guidance suggests that management expects revenue between $70 million and $74 million for next quarter, with per-share earnings between $0.08 and $0.12. Alas, analysts' consensus called for $76.3 million in sales, a number skewed by one asleep-at-the-switch dart-thrower who expected $83 million in revenues.
The difficulty, as CEO Dave Woodle noted during an unusually effective conference call, is normal and seasonal; September is typically a slower quarter.
I suppose I understand a skittish market's distaste with slightly lower-than-expected guidance, even if the shortfall is understandable. For my money, however, C-COR is a well-managed company, with $111 million in cash as part of a terrific balance sheet, and a customer base with whom video on demand might finally be picking up speed.
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While the market may not have rewarded C-COR for its quarterly performance, our CAPS community feels differently. Since earnings were released, eleven more CAPS members have rated the company. Nine of those eleven believe the company will outperform the S&P 500. This has helped C-COR achieve a ranking of 4 (out of 5) stars in CAPS, with 95% of the CAPS community giving it a thumbs up. Have any insights to share? Bring it to CAPS.