The 10-second takeaway
For the quarter ended March 31 (Q1), Zix met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank. GAAP earnings per share contracted significantly.
Gross margins grew, operating margins dropped, net margins contracted.
Zix reported revenue of $11.8 million. The three analysts polled by S&P Capital IQ predicted a top line of $11.8 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $10.3 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 $0.02. The two earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. Non-GAAP EPS of $0.02 for Q1 were 50% lower than the prior-year quarter's $0.04 per share. GAAP EPS of $0.01 for Q1 were 75% lower than the prior-year quarter's $0.04 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 83.5%, 150 basis points better than the prior-year quarter. Operating margin was 5.1%, much worse than the prior-year quarter. Net margin was 4.8%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $12.1 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $49.7 million. The average EPS estimate is $0.20.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 547 members out of 783 rating the stock outperform, and 236 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Zix 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 Zix is buy, with an average price target of $5.08.
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