The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allot Communications beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins increased, net margins increased.
Allot Communications reported revenue of $22.0 million. The 10 analysts polled by S&P Capital IQ expected sales of $20.8 million. Sales were 36% higher than the prior-year quarter's $16.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.14. The five earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share on the same basis. GAAP EPS of $0.12 for Q4 were 140% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 71.4%, 30 basis points worse than the prior-year quarter. Operating margin was 14.0%, 530 basis points better than the prior-year quarter. Net margin was 15.9%, 760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $20.5 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $90.7 million. The average EPS estimate is $0.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 105 members out of 110 rating the stock outperform, and six members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Allot Communications a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allot Communications is buy, with an average price target of $19.39.
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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.