The 10-second takeaway
For the quarter ended July 1 (Q4), Oplink Communications met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank to a loss.
Gross margins shrank, operating margins grew, net margins dropped.
Oplink Communications reported revenue of $44.2 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $44.6 million on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $43.7 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 $0.19. The four earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS were -$0.27 for Q4 against $1.23 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 34.3%, 40 basis points worse than the prior-year quarter. Operating margin was 7.6%, 30 basis points better than the prior-year quarter. Net margin was -11.7%, 7,180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $46.2 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $197.8 million. The average EPS estimate is $0.80.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 166 members out of 189 rating the stock outperform, and 23 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Oplink Communications a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oplink Communications is buy, with an average price target of $23.66.
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