The 10-second takeaway
For the quarter ended March 31 (Q4), OPNET Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Margins contracted across the board.
OPNET Technologies booked revenue of $44.6 million. The five analysts polled by S&P Capital IQ expected to see revenue of $44.5 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $41.1 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 $0.18. The five earnings estimates compiled by S&P Capital IQ forecast $0.16 per share. GAAP EPS of $0.18 for Q4 were 5.9% higher than the prior-year quarter's $0.17 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 78.1%, 230 basis points worse than the prior-year quarter. Operating margin was 13.6%, 160 basis points worse than the prior-year quarter. Net margin was 9.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $43.7 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $198.3 million. The average EPS estimate is $0.99.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 135 members out of 140 rating the stock outperform, and five members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give OPNET Technologies a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OPNET Technologies is outperform, with an average price target of $39.71.
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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.