The 10-second takeaway
For the quarter ended March 31 (Q1), Avid Technology met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share expanded.
Margins dropped across the board.
Avid Technology notched revenue of $152.1 million. The three analysts polled by S&P Capital IQ foresaw a top line of $152.0 million on the same basis. GAAP reported sales were 8.5% lower than the prior-year quarter's $166.3 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 -$0.24. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.22 per share. GAAP EPS were -$0.40 for Q1 compared to -$0.13 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 50.4%, 210 basis points worse than the prior-year quarter. Operating margin was -9.7%, 630 basis points worse than the prior-year quarter. Net margin was -10.3%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $158.9 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $673.2 million. The average EPS estimate is $0.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 91 members out of 133 rating the stock outperform, and 42 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Avid Technology a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avid Technology is hold, with an average price target of $12.13.
Over the decades, small-cap stocks like Avid Technology have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Avid Technology 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.