The 10-second takeaway
For the quarter ended June 29 (Q2), Harmonic missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share didn't change.
Margins dropped across the board.
Harmonic reported revenue of $132.6 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $135.0 million on the same basis. GAAP reported sales were 1.0% lower than the prior-year quarter's $134.0 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 $0.06. The eight earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.00 were the same as 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 43.4%, 270 basis points worse than the prior-year quarter. Operating margin was -1.8%, 280 basis points worse than the prior-year quarter. Net margin was 0.0%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $142.1 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $554.0 million. The average EPS estimate is $0.30.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 293 members out of 311 rating the stock outperform, and 18 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Harmonic a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harmonic is outperform, with an average price target of $6.04.
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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.