The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sourcefire beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Sourcefire recorded revenue of $67.4 million. The 16 analysts polled by S&P Capital IQ hoped for sales of $63.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $53.2 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 18 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. Non-GAAP EPS of $0.29 for Q4 were 16% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.08 for Q4 were 43% lower than the prior-year quarter's $0.14 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 76.0%, 90 basis points worse than the prior-year quarter. Operating margin was 4.9%, 330 basis points worse than the prior-year quarter. Net margin was 3.9%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $55.9 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $269.0 million.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 146 members out of 182 rating the stock outperform, and 36 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Sourcefire a green thumbs-up, and eight give it a red thumbs-down.
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