The 10-second takeaway
For the quarter ended Dec. 31 (Q4), KEYW Holding missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank to zero.
Gross margins increased, operating margins shrank, net margins dropped.
KEYW Holding notched revenue of $74.2 million. The six analysts polled by S&P Capital IQ foresaw a top line of $76.2 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $50.1 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 $0.00. The six earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.01.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.6%, 320 basis points better than the prior-year quarter. Operating margin was 1.2%, 90 basis points worse than the prior-year quarter. Net margin was 0.2%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $80.6 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $354.0 million. The average EPS estimate is $0.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 26 members out of 26 rating the stock outperform, and members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give KEYW Holding a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KEYW Holding is buy, with an average price target of $16.00.
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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.