The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Websense met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Websense reported revenue of $91.7 million. The four analysts polled by S&P Capital IQ predicted revenue of $91.7 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $92.7 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 two earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share. GAAP EPS of $0.10 for Q4 were 63% lower than the prior-year quarter's $0.27 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 83.3%, 60 basis points worse than the prior-year quarter. Operating margin was 6.1%, 830 basis points worse than the prior-year quarter. Net margin was 4.2%, 700 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 $0.21.
Next year's average estimate for revenue is $355.7 million. The average EPS estimate is $1.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 89 members out of 110 rating the stock outperform, and 21 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Websense 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 Websense is hold, with an average price target of $15.79.
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