The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ceragon Networks met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Ceragon Networks reported revenue of $118.5 million. The 11 analysts polled by S&P Capital IQ foresaw sales of $119.2 million on the same basis. GAAP reported sales were 77% higher than the prior-year quarter's $67.0 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 $0.06. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.06 per share on the same basis. GAAP EPS were -$0.23 for Q4 versus $0.10 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 29.0%, 800 basis points worse than the prior-year quarter. Operating margin was -5.9%, 1,300 basis points worse than the prior-year quarter. Net margin was -6.9%, 1,260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $116.5 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $500.6 million. The average EPS estimate is $0.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,489 members out of 1,521 rating the stock outperform, and 33 members rating it underperform. Among 347 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 345 give Ceragon Networks 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 Ceragon Networks is outperform, with an average price target of $12.20.
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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. Motley Fool newsletter services have recommended buying shares of Ceragon Networks. 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.