The 10-second takeaway
For the quarter ended March 30 (Q1), Sonus Networks beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share shrank.
Margins increased across the board.
Sonus Networks reported revenue of $64.3 million. The six analysts polled by S&P Capital IQ wanted to see sales of $58.6 million on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $67.3 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 -$0.02. The five earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share. GAAP EPS were -$0.02 for Q1 versus -$0.04 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 64.9%, 2,530 basis points better than the prior-year quarter. Operating margin was -9.6%, 750 basis points better than the prior-year quarter. Net margin was -10.0%, 840 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $63.8 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $273.2 million. The average EPS estimate is $0.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 374 members out of 397 rating the stock outperform, and 23 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Sonus Networks a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonus Networks is hold, with an average price target of $3.05.
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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.