The 10-second takeaway
For the quarter ended June 30 (Q2), Limelight Networks missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share contracted.
Margins increased across the board.
Limelight Networks reported revenue of $44.4 million. The nine analysts polled by S&P Capital IQ expected to see sales of $45.6 million on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $41.6 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 -$0.05. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.10 for Q2 against -$0.12 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 54.1%, 480 basis points better than the prior-year quarter. Operating margin was -21.1%, 450 basis points better than the prior-year quarter. Net margin was -22.1%, 1,140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $44.8 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $181.8 million. The average EPS estimate is -$0.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 287 members out of 321 rating the stock outperform, and 34 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Limelight Networks a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Limelight Networks is outperform, with an average price target of $3.94.
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