The 10-second takeaway
For the quarter ended Jan. 1 (Q2), Symmetricom beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and earnings per share increased.
Margins grew across the board.
Symmetricom reported revenue of $58.3 million. The two analysts polled by S&P Capital IQ hoped for a top line of $56.7 million. Sales were 39% higher than the prior-year quarter's $41.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.10. The two earnings estimates compiled by S&P Capital IQ averaged $0.10 per share on the same basis. GAAP EPS were $0.06 for Q2 against -$0.08 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 44.7%, 20 basis points better than the prior-year quarter. Operating margin was 7.6%, 1,250 basis points better than the prior-year quarter. Net margin was 4.2%, 1,260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $57.0 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $230.6 million. The average EPS estimate is $0.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 53 members out of 65 rating the stock outperform, and 12 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Symmetricom a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Symmetricom is outperform, with an average price target of $6.73.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Symmetricom fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Symmetricom to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.