The 10-second takeaway
For the quarter ended March 31 (Q4), Plantronics met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share increased.
Gross margins grew, operating margins expanded, net margins contracted.
Plantronics reported revenue of $177.6 million. The six analysts polled by S&P Capital IQ wanted to see sales of $178.1 million on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $173.1 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 $0.62. The seven earnings estimates compiled by S&P Capital IQ forecast $0.65 per share. GAAP EPS of $0.55 for Q4 were 3.8% higher than the prior-year quarter's $0.53 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 53.6%, 130 basis points better than the prior-year quarter. Operating margin was 18.0%, 110 basis points better than the prior-year quarter. Net margin was 13.5%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $182.2 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $758.4 million. The average EPS estimate is $2.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 123 members out of 136 rating the stock outperform, and 13 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Plantronics 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 Plantronics is outperform, with an average price target of $43.00.
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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.