The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Polycom beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Polycom notched revenue of $335.4 million. The 15 analysts polled by S&P Capital IQ predicted net sales of $331.0 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $379.0 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 $0.10. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were -$0.08 for Q3 compared to $0.13 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 58.5%, 130 basis points worse than the prior-year quarter. Operating margin was -1.6%, 1,070 basis points worse than the prior-year quarter. Net margin was -4.2%, 1,050 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $359.7 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.41 billion. The average EPS estimate is $0.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 199 members out of 221 rating the stock outperform, and 22 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Polycom 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 Polycom is hold, with an average price target of $10.54.
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