The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Harmonic missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share shrank significantly. GAAP earnings per share didn't move.
Gross margins grew, operating margins dropped, net margins grew.
Harmonic logged revenue of $133.4 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $137.6 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $143.6 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 $0.09. The six earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS of $0.09 for Q4 were 25% lower than the prior-year quarter's $0.12 per share. GAAP EPS of $0.04 were the same as 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 49.0%, 240 basis points better than the prior-year quarter. Operating margin was 2.1%, 250 basis points worse than the prior-year quarter. Net margin was 3.6%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $118.4 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $525.8 million. The average EPS estimate is $0.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 290 members out of 309 rating the stock outperform, and 19 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Harmonic a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harmonic is hold, with an average price target of $5.19.
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