The 10-second takeaway
For the quarter ended Feb. 29 (Q4), DragonWave whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share increased.
Margins dropped across the board.
DragonWave logged revenue of $9.1 million. The eight analysts polled by S&P Capital IQ looked for revenue of $10.5 million on the same basis. GAAP reported sales were 39% lower than the prior-year quarter's $15.1 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 -$0.38. The five earnings estimates compiled by S&P Capital IQ averaged -$0.25 per share. GAAP EPS were -$0.38 for Q4 versus -$0.25 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 12.5%, 1,670 basis points worse than the prior-year quarter. Operating margin was -141.5%, 8,380 basis points worse than the prior-year quarter. Net margin was -146.1%, 8,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.4 million. On the bottom line, the average EPS estimate is -$0.23.
Next year's average estimate for revenue is $313.8 million. The average EPS estimate is -$0.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 259 members out of 271 rating the stock outperform, and 12 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give DragonWave 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 DragonWave is hold, with an average price target of $4.65.
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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.