The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sonus Networks missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share shrank. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Sonus Networks logged revenue of $75.1 million. The six analysts polled by S&P Capital IQ predicted revenue of $79.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.01. The six earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. Non-GAAP EPS of $0.01 for Q4 were 50% lower than the prior-year quarter's $0.02 per share. GAAP EPS were -$0.06 for Q4 against $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.4%, much worse than the prior-year quarter. Operating margin was -12.8%, much worse than the prior-year quarter. Net margin was -21.8%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $62.3 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $272.7 million. The average EPS estimate is -$0.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 361 members out of 387 rating the stock outperform, and 26 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Sonus Networks a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonus Networks is outperform, with an average price target of $3.01.
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