The 10-second takeaway
For the quarter ended Sep. 30 (Q3), BroadSoft missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank significantly.
Margins dropped across the board.
BroadSoft chalked up revenue of $40.2 million. The 13 analysts polled by S&P Capital IQ predicted a top line of $41.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $35.7 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 $0.36. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. GAAP EPS of $0.11 for Q3 were 58% lower than the prior-year quarter's $0.26 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 82.6%, 100 basis points worse than the prior-year quarter. Operating margin was 16.1%, 1,070 basis points worse than the prior-year quarter. Net margin was 7.8%, 1,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $46.1 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $166.4 million. The average EPS estimate is $1.38.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 37 members out of 136 rating the stock outperform, and 99 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give BroadSoft a green thumbs-up, and 38 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BroadSoft is outperform, with an average price target of $43.40.
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