The 10-second takeaway
For the quarter ended Dec. 31 (Q3), OPNET Technologies met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins improved, net margins expanded.
OPNET Technologies booked revenue of $46.0 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $46.4 million. Sales were 16% higher than the prior-year quarter's $39.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.23. The seven earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS of $0.23 for Q3 were 21% higher than the prior-year quarter's $0.19 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 78.5%, 170 basis points worse than the prior-year quarter. Operating margin was 18.0%, 390 basis points better than the prior-year quarter. Net margin was 11.6%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $48.0 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $176.4 million. The average EPS estimate is $0.93.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 135 members out of 142 rating the stock outperform, and seven members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give OPNET Technologies 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 OPNET Technologies is outperform, with an average price target of $44.66.
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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.