The 10-second takeaway
For the quarter ended June 30 (Q4), Oclaro met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share contracted.
Gross margins dropped, operating margins contracted, and net margins improved.
Oclaro logged revenue of $104.4 million. The four analysts polled by S&P Capital IQ anticipated revenue of $105.4 million on the same basis. GAAP reported sales were 4.3% lower than the prior-year quarter's $109.2 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 -$0.21. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.16 per share. GAAP EPS were -$0.08 for Q4 compared to -$0.75 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 20.5%, 210 basis points worse than the prior-year quarter. Operating margin was -14.1%, 340 basis points worse than the prior-year quarter. Net margin was -3.8%, 2,990 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $111.7 million. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $471.8 million. The average EPS estimate is -$0.09.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 125 members rating the stock outperform and 31 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Oclaro a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oclaro is hold, with an average price target of $5.15.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Oclaro fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Oclaro to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.
More from The Motley Fool
Why Many Optical Networking Stocks Plunged in November
Demand for optical components may be unpredictable these days, but there's nothing wrong with this sector in the long run.
Why Oclaro, Inc. Could Be a Gold Mine for Value Investors
This unloved optical stock could be a great value play for patient investors.
Better Buy: Infinera Corp. vs. Oclaro Inc.
Both of these optical networking experts can serve your portfolio well over the next few years, in subtly different ways.