The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Synchronoss Technologies beat 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 grew, operating margins increased, net margins contracted.
Synchronoss Technologies logged revenue of $73.2 million. The 13 analysts polled by S&P Capital IQ expected net sales of $70.1 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $62.2 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 $0.29. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. GAAP EPS of $0.09 for Q4 were 57% lower than the prior-year quarter's $0.21 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 57.3%, 290 basis points better than the prior-year quarter. Operating margin was 9.0%, 330 basis points better than the prior-year quarter. Net margin was 4.7%, 850 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $74.2 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $331.3 million. The average EPS estimate is $1.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 449 members out of 475 rating the stock outperform, and 26 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Synchronoss Technologies a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Synchronoss Technologies is outperform, with an average price target of $27.75.
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