The 10-second takeaway
For the quarter ended March 31 (Q1), Allot Communications beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins improved, net margins increased.
Allot Communications recorded revenue of $24.2 million. The 10 analysts polled by S&P Capital IQ foresaw revenue of $21.4 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $17.2 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 $0.15. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS of $0.10 for Q1 were 67% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 71.5%, 30 basis points worse than the prior-year quarter. Operating margin was 11.5%, 210 basis points better than the prior-year quarter. Net margin was 13.4%, 390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $22.7 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $93.9 million. The average EPS estimate is $0.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 110 members out of 116 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Allot Communications 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 Allot Communications is outperform, with an average price target of $22.40.
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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.