The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Polycom met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Polycom reported revenue of $353.0 million. The 15 analysts polled by S&P Capital IQ predicted revenue of $350.7 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $407.0 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 $0.17. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.01 for Q4 were 96% lower than the prior-year quarter's $0.28 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 58.6%, 140 basis points worse than the prior-year quarter. Operating margin was 2.0%, 1,080 basis points worse than the prior-year quarter. Net margin was 0.6%, 1,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $340.4 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.45 billion. The average EPS estimate is $0.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 201 members out of 222 rating the stock outperform, and 21 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Polycom a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Polycom is hold, with an average price target of $10.58.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Polycom 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 Polycom 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. TMFDisclosureHere