The 10-second takeaway
For the quarter ended Jan. 31 (Q4), SeaChange International missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
SeaChange International recorded revenue of $51.7 million. The two analysts polled by S&P Capital IQ expected a top line of $54.0 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $61.4 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 $0.16. The two earnings estimates compiled by S&P Capital IQ predicted $0.16 per share on the same basis. GAAP EPS were -$0.15 for Q4 against $0.34 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 50.9%, 330 basis points worse than the prior-year quarter. Operating margin was 9.5%, 460 basis points worse than the prior-year quarter. Net margin was -9.3%, 2,700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $44.8 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $195.3 million. The average EPS estimate is $0.58.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 159 members out of 165 rating the stock outperform, and six members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give SeaChange International 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 SeaChange International is outperform, with an average price target of $10.00.
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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.