The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Avid Technology met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share increased.
Gross margins expanded, operating margins contracted, net margins shrank.
Avid Technology reported revenue of $127.2 million. The two analysts polled by S&P Capital IQ looked for a top line of $126.0 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $165.0 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 -$0.08. The two earnings estimates compiled by S&P Capital IQ averaged -$0.08 per share. GAAP EPS were -$0.45 for Q3 compared to -$0.21 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 53.7%, 10 basis points better than the prior-year quarter. Operating margin was -2.7%, 150 basis points worse than the prior-year quarter. Net margin was -13.7%, 880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $148.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $585.5 million. The average EPS estimate is -$0.23.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 84 members out of 131 rating the stock outperform, and 47 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Avid Technology a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avid Technology is hold, with an average price target of $9.17.
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