The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Sourcefire 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 dropped significantly.
Margins contracted across the board.
Sourcefire reported revenue of $58.8 million. The 14 analysts polled by S&P Capital IQ predicted sales of $55.8 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $45.2 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 $0.25. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.04 for Q3 were 43% lower than the prior-year quarter's $0.07 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 77.2%, 40 basis points worse than the prior-year quarter. Operating margin was 7.3%, 210 basis points worse than the prior-year quarter. Net margin was 2.1%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.4 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $215.0 million. The average EPS estimate is $0.77.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 144 members out of 181 rating the stock outperform, and 37 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Sourcefire a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sourcefire is outperform, with an average price target of $57.92.
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