The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Harmonic beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share grew.
Margins grew across the board.
Harmonic tallied revenue of $143.6 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $140.8 million. Sales were 3.9% higher than the prior-year quarter's $138.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.12. The eight earnings estimates compiled by S&P Capital IQ predicted $0.12 per share on the same basis. GAAP EPS were $0.04 for Q4 compared to -$0.12 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 46.6%, 40 basis points better than the prior-year quarter. Operating margin was 4.6%, 100 basis points better than the prior-year quarter. Net margin was 3.0%, 1,290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $138.8 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $592.6 million. The average EPS estimate is $0.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 306 members out of 325 rating the stock outperform, and 19 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Harmonic 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 Harmonic is outperform, with an average price target of $7.10.
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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.