The 10-second takeaway
For the quarter ended Sep. 29 (Q2), Black Box beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Black Box booked revenue of $260.2 million. The one analyst polled by S&P Capital IQ foresaw revenue of $253.6 million on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $287.2 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 $0.65. The one earnings estimate compiled by S&P Capital IQ forecast $0.70 per share. GAAP EPS of $0.43 for Q2 were 48% lower than the prior-year quarter's $0.83 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 30.8%, 10 basis points worse than the prior-year quarter. Operating margin was 5.1%, 270 basis points worse than the prior-year quarter. Net margin was 2.7%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $254.9 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $2.63.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 66 members out of 79 rating the stock outperform, and 13 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Black Box a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Box is buy, with an average price target of $29.00.
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