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What to Expect from Harmonic

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

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Checking expectations

Harmonic (Nasdaq: HLIT) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Harmonic's revenues will decrease -10.8% and EPS will decrease -66.7%.

The average estimate for revenue is $113.9 million. On the bottom line, the average EPS estimate is $0.01.

Revenue details
Last quarter, Harmonic booked revenue of $133.4 million. 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 details
Last quarter, non-GAAP EPS came in at $0.09. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $507.4 million. The average EPS estimate is $0.29.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 293 members out of 312 rating the stock outperform, and 19 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 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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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Harmonic Inc. Stock Quote
Harmonic Inc.
HLIT
$10.53 (-2.05%) $0.22

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