The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Arris Group missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Gross margins dropped, operating margins expanded, net margins grew.
Arris Group notched revenue of $344.0 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $354.3 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $281.1 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 seven earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS were $0.13 for Q4 against -$0.51 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 35.8%, 210 basis points worse than the prior-year quarter. Operating margin was 9.0%, 130 basis points better than the prior-year quarter. Net margin was 4.3%, 2,550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $338.4 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is $1.15.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 741 members out of 766 rating the stock outperform, and 25 members rating it underperform. Among 163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give Arris Group a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arris Group is hold, with an average price target of $15.94.
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