The 10-second takeaway
For the quarter ended March 31 (Q1), Ixia met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins shrank, net margins grew.
Ixia logged revenue of $122.8 million. The six analysts polled by S&P Capital IQ wanted to see sales of $122.4 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $85.6 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 $0.25. The six earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. Non-GAAP EPS of $0.25 for Q1 were 67% higher than the prior-year quarter's $0.15 per share. GAAP EPS of $0.11 for Q1 were 83% higher than the prior-year quarter's $0.06 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 80.1%, 20 basis points worse than the prior-year quarter. Operating margin was 9.3%, 170 basis points worse than the prior-year quarter. Net margin was 6.6%, 150 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $127.8 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $528.6 million. The average EPS estimate is $0.99.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 67 members out of 80 rating the stock outperform, and 13 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Ixia a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ixia is outperform, with an average price target of $21.92.
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