The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ixia met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins dropped.
Ixia tallied revenue of $124.1 million. The six analysts polled by S&P Capital IQ foresaw revenue of $124.1 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $83.7 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 $0.24. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. GAAP EPS of $0.06 for Q4 were 54% lower than the prior-year quarter's $0.13 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 80.1%, 90 basis points better than the prior-year quarter. Operating margin was 8.2%, 690 basis points worse than the prior-year quarter. Net margin was 3.7%, 800 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $119.9 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $527.1 million. The average EPS estimate is $0.97.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 64 members out of 76 rating the stock outperform, and 12 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Ixia 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 Ixia is outperform, with an average price target of $17.79.
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