The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Globecomm Systems missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Globecomm Systems logged revenue of $81.2 million. The three analysts polled by S&P Capital IQ expected to see revenue of $83.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $71.0 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 $0.12. The three earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.12 for Q1 were 71% lower than the prior-year quarter's $0.41 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 21.1%, 550 basis points worse than the prior-year quarter. Operating margin was 5.1%, 80 basis points worse than the prior-year quarter. Net margin was 3.3%, 980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $85.7 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $350.8 million. The average EPS estimate is $0.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 196 members out of 207 rating the stock outperform, and 11 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Globecomm Systems a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Globecomm Systems is outperform, with an average price target of $15.37.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Globecomm Systems fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Globecomm Systems to My Watchlist.