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.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Sonus Networks 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 Sonus Networks to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.