The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Limelight Networks met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
Limelight Networks reported revenue of $45.0 million. The nine analysts polled by S&P Capital IQ expected to see net sales of $44.8 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $42.4 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 -$0.05. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.05 per share. GAAP EPS were -$0.01 for Q3 versus $0.04 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 37.2%, 1,500 basis points worse than the prior-year quarter. Operating margin was -21.1%, 310 basis points worse than the prior-year quarter. Net margin was -1.8%, 1,360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.2 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $181.8 million. The average EPS estimate is -$0.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 284 members out of 316 rating the stock outperform, and 32 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Limelight Networks 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 Limelight Networks is outperform, with an average price target of $3.64.
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