The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Calix beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP loss per share increased.
Margins dropped across the board.
Calix booked revenue of $91.6 million. The seven analysts polled by S&P Capital IQ expected net sales of $89.7 million. GAAP sales were 0.1% lower than the prior-year quarter's $91.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.08. The seven earnings estimates compiled by S&P Capital IQ averaged $0.06 per share on the same basis. GAAP EPS were -$0.11 for Q4 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.7%, 90 basis points worse than the prior-year quarter. Operating margin was -5.6%, 640 basis points worse than the prior-year quarter. Net margin was -5.7%, 490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $81.0 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $405.9 million. The average EPS estimate is $0.53.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 56 members out of 63 rating the stock outperform, and seven members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Calix 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 Calix is hold, with an average price target of $9.00.
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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.