The 10-second takeaway
For the quarter ended March 31 (Q3), Globecomm Systems beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped.
Margins contracted across the board.
Globecomm Systems reported revenue of $110.9 million. The three analysts polled by S&P Capital IQ foresaw revenue of $100.3 million on the same basis. GAAP reported sales were 78% higher than the prior-year quarter's $62.5 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 $0.13. The three earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.13 for Q3 were 7.1% lower than the prior-year quarter's $0.14 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 21.4%, 730 basis points worse than the prior-year quarter. Operating margin was 8.4%, 30 basis points worse than the prior-year quarter. Net margin was 2.6%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $111.8 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $378.3 million. The average EPS estimate is $1.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 194 members rating the stock outperform and 10 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Globecomm Systems a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Globecomm Systems is outperform, with an average price target of $18.50.
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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.