The 10-second takeaway
For the quarter ended June 30 (Q4), Globecomm Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins dropped, net margins grew.
Globecomm Systems reported revenue of $104.8 million. The three analysts polled by S&P Capital IQ expected to see a top line of $99.2 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $88.3 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 $0.31. The three earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.31 for Q4 were 210% higher than the prior-year quarter's $0.10 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.2%, 510 basis points worse than the prior-year quarter. Operating margin was 4.8%, 270 basis points worse than the prior-year quarter. Net margin was 6.8%, 440 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $88.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $404.5 million. The average EPS estimate is $0.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 197 members out of 206 rating the stock outperform, and nine members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Globecomm Systems a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Globecomm Systems is outperform, with an average price target of $17.83.
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