The 10-second takeaway
For the quarter ended June 30 (Q4), Fusion-io beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Fusion-io reported revenue of $106.6 million. The 14 analysts polled by S&P Capital IQ predicted a top line of $95.8 million on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $71.7 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 $0.09. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS were -$0.03 for Q4 versus $0.07 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 57.5%, 870 basis points worse than the prior-year quarter. Operating margin was -0.9%, 1,430 basis points worse than the prior-year quarter. Net margin was -2.2%, 1,020 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $104.2 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $477.5 million. The average EPS estimate is $0.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 175 members out of 192 rating the stock outperform, and 17 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Fusion-io 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 Fusion-io is outperform, with an average price target of $29.92.
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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. The Motley Fool owns shares of Fusion-io. 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