The 10-second takeaway
For the quarter ended Dec. 31 (Q4), UTStarcom Holdings met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Margins expanded across the board.
UTStarcom Holdings booked revenue of $83.5 million. The one analyst polled by S&P Capital IQ predicted revenue of $83.1 million on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $76.1 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 $0.03. The one earnings estimate compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS were $0.03 for Q4 versus -$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 34.2%, 2,360 basis points better than the prior-year quarter. Operating margin was 10.0%, 3,580 basis points better than the prior-year quarter. Net margin was 4.9%, 3,510 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $64.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $335.3 million. The average EPS estimate is $0.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 145 members out of 185 rating the stock outperform, and 40 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give UTStarcom Holdings a green thumbs-up, and 13 give it a red thumbs-down.
The game is changing for makers of communications equipment, and some of the old guard may not make it. Where will UTStarcom Holdings fit in? Who's going to lead going forward? Check out out free report: "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add UTStarcom Holdings to My Watchlist.
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.