The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Synchronoss Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Synchronoss Technologies booked revenue of $69.0 million. The 13 analysts polled by S&P Capital IQ looked for revenue of $69.3 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $59.2 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 $0.28. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.16 for Q3 were 78% higher than the prior-year quarter's $0.09 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 57.8%, 470 basis points better than the prior-year quarter. Operating margin was 16.2%, 620 basis points better than the prior-year quarter. Net margin was 9.0%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $73.0 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $274.2 million. The average EPS estimate is $1.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 443 members out of 469 rating the stock outperform, and 26 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Synchronoss Technologies 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 Synchronoss Technologies is outperform, with an average price target of $28.58.
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