The 10-second takeaway
For the quarter ended March 31 (Q1), Calix missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share dropped.
Gross margin shrank, operating margin dropped, and net margin increased.
Calix reported revenue of $78.6 million. The seven analysts polled by S&P Capital IQ expected sales of $81 million on the same basis. GAAP-reported sales were 9.9% higher than the prior-year quarter's $71.5 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 $0.01. The six earnings estimates compiled by S&P Capital IQ anticipated $0 per share. GAAP EPS were -$0.16 for Q1 versus -$0.55 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 44.7%, 30 basis points worse than the prior-year quarter. Operating margin was -9.4%, 40 basis points worse than the prior-year quarter. Net margin was -9.6%, 2,220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $94.5 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $397.6 million. The average EPS estimate is $0.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 68 members rating the stock outperform and seven members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Calix 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 Calix is outperform, with an average price target of $10.75.
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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.