The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Globecomm Systems missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Globecomm Systems reported revenue of $79.7 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $81.9 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $95.2 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 three earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.17 for Q2 were 59% lower than the prior-year quarter's $0.41 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 24.1%, 10 basis points worse than the prior-year quarter. Operating margin was 7.4%, 100 basis points worse than the prior-year quarter. Net margin was 4.8%, 490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $86.6 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $342.8 million. The average EPS estimate is $0.67.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 199 members out of 209 rating the stock outperform, and 10 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Globecomm Systems a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Globecomm Systems is outperform, with an average price target of $15.20.
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