The 10-second takeaway
For the quarter ended Feb. 28 (Q3), Team met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Team logged revenue of $151.0 million. The six analysts polled by S&P Capital IQ expected to see a top line of $150.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $136.5 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 -$0.01. The six earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. Non-GAAP EPS were -$0.01 for Q3 against $0.10 per share for the prior-year quarter. GAAP EPS were -$0.03 for Q3 versus $0.10 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 25.8%, 100 basis points worse than the prior-year quarter. Operating margin was 0.4%, 390 basis points worse than the prior-year quarter. Net margin was -0.4%, 190 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $204.0 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $715.8 million. The average EPS estimate is $1.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 232 members out of 243 rating the stock outperform, and 11 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Team 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 Team is hold, with an average price target of $45.83.
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