Limelight Networks's Upcoming Earnings: What You Need To Know

Checking expectations

Seth Jayson
Seth Jayson
Feb 14, 2013 at 12:00AM
Other

Limelight Networks (Nasdaq: LLNW) is expected to report Q4 earnings on Feb. 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Limelight Networks's revenues will increase 0.7% and EPS will remain in the red.

The average estimate for revenue is $46.3 million. On the bottom line, the average EPS estimate is -$0.04.

Revenue details
Last quarter, Limelight Networks chalked up revenue of $45.0 million. GAAP reported sales were 6.3% higher than the prior-year quarter's $42.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.05. GAAP EPS were -$0.01 for Q3 compared to $0.04 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 52.6%, 40 basis points better than the prior-year quarter. Operating margin was -20.8%, 210 basis points worse than the prior-year quarter. Net margin was -1.8%, 1,360 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $180.0 million. The average EPS estimate is -$0.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 283 members out of 312 rating the stock outperform, and 29 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Limelight Networks a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Limelight Networks is hold, with an average price target of $3.64.

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