The 10-second takeaway
For the quarter ended Sep. 28 (Q3), Sonus Networks met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Sonus Networks booked revenue of $57.0 million. The seven analysts polled by S&P Capital IQ looked for revenue of $56.5 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $66.4 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 -$0.02. The six earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS were -$0.06 for Q3 versus $0.01 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 56.9%, 670 basis points worse than the prior-year quarter. Operating margin was -15.3%, 1,710 basis points worse than the prior-year quarter. Net margin was -27.4%, 3,030 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.0 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $272.4 million. The average EPS estimate is -$0.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 373 members out of 398 rating the stock outperform, and 25 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Sonus Networks a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonus Networks is outperform, with an average price target of $2.98.
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