The 10-second takeaway
For the quarter ended Jan. 31 (Q3), Mitel Networks met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins expanded, net margins dropped.
Mitel Networks chalked up revenue of $142.0 million. The three analysts polled by S&P Capital IQ wanted to see revenue of $142.0 million on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $150.5 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 $0.23. The five earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. Non-GAAP EPS of $0.23 for Q3 were 9.5% higher than the prior-year quarter's $0.21 per share. GAAP EPS of $0.04 for Q3 were 50% lower than the prior-year quarter's $0.08 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 55.5%, 110 basis points better than the prior-year quarter. Operating margin was 8.6%, 90 basis points better than the prior-year quarter. Net margin was 1.5%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $145.4 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $571.4 million. The average EPS estimate is $0.73.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 15 members out of 19 rating the stock outperform, and four members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Mitel Networks 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 Mitel Networks is outperform, with an average price target of $4.80.
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