The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Echelon beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share shrank.
Gross margins contracted, operating margins improved, net margins increased.
Echelon reported revenue of $40.5 million. The 15 analysts polled by S&P Capital IQ predicted revenue of $40.0 million. GAAP sales were 4.4% higher than the prior-year quarter's $38.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.10. The 12 earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. GAAP EPS were -$0.10 for Q4 against -$0.15 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 39.2%, 430 basis points worse than the prior-year quarter. Operating margin was -9.5%, 180 basis points better than the prior-year quarter. Net margin was -10.3%, 530 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $38.5 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $173.8 million. The average EPS estimate is -$0.20.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 242 members out of 269 rating the stock outperform, and 27 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Echelon a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Echelon is outperform, with an average price target of $9.13.
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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.