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.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Ixia 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 Ixia 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. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.