The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Globecomm Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins improved, and net margins improved.
Globecomm Systems recorded revenue of $95.2 million. The three analysts polled by S&P Capital IQ predicted sales of $89.3 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $70.2 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 $0.41. The three earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.41 for Q2 were 413% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.2%, 60 basis points worse than the prior-year quarter. Operating margin was 8.4%, 130 basis points better than the prior-year quarter. Net margin was 9.7%, 730 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $100.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $374.8 million. The average EPS estimate is $1.11.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 192 members rating the stock outperform and 10 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Globecomm Systems 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 Globecomm Systems is outperform, with an average price target of $17.33.
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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.