The 10-second takeaway
For the quarter ended March 31 (Q1), Limelight Networks met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share expanded.
Gross margins grew, operating margins dropped, net margins improved.
Limelight Networks tallied revenue of $44.3 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $44.5 million on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $41.4 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 -$0.05. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.10 for Q1 against -$0.09 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 53.7%, 110 basis points better than the prior-year quarter. Operating margin was -21.5%, 660 basis points worse than the prior-year quarter. Net margin was -22.6%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $45.5 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $188.5 million. The average EPS estimate is -$0.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 294 members out of 325 rating the stock outperform, and 31 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Limelight Networks a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Limelight Networks is outperform, with an average price target of $4.50.
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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.