The 10-second takeaway
For the quarter ended March 31 (Q1), Sourcefire beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to zero.
Gross margins dropped, operating margins improved, net margins contracted.
Sourcefire reported revenue of $46.3 million. The 15 analysts polled by S&P Capital IQ expected to see revenue of $41.7 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $30.8 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 $0.11. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.02.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.4%, 220 basis points worse than the prior-year quarter. Operating margin was 0.3%, 620 basis points better than the prior-year quarter. Net margin was 0.1%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $47.3 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $215.7 million. The average EPS estimate is $0.77.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 118 members out of 149 rating the stock outperform, and 31 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Sourcefire a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sourcefire is outperform, with an average price target of $43.64.
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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. Motley Fool newsletter services have recommended buying shares of Sourcefire. 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.