The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Procera Networks whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins dropped, net margins contracted.
Procera Networks reported revenue of $16.6 million. The seven analysts polled by S&P Capital IQ foresaw net sales of $19.1 million on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $15.6 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 $0.12. The seven earnings estimates compiled by S&P Capital IQ averaged $0.14 per share. Non-GAAP EPS of $0.12 for Q4 were 20% lower than the prior-year quarter's $0.15 per share. GAAP EPS of $0.06 for Q4 were 45% lower than the prior-year quarter's $0.11 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 64.7%, 910 basis points better than the prior-year quarter. Operating margin was 7.0%, 440 basis points worse than the prior-year quarter. Net margin was 7.4%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.0 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $75.0 million. The average EPS estimate is $0.54.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 96 members out of 102 rating the stock outperform, and six members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Procera Networks 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 Procera Networks is buy, with an average price target of $28.80.
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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.