The 10-second takeaway
For the quarter ended March 31 (Q3), ShoreTel beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share contracted. GAAP loss per share shrank.
Gross margins contracted, operating margins increased, net margins increased.
ShoreTel reported revenue of $78.3 million. The eight analysts polled by S&P Capital IQ anticipated a top line of $75.5 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $56.3 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 -$0.01. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. Non-GAAP EPS were -$0.01 for Q3 against -$0.03 per share for the prior-year quarter. GAAP EPS were -$0.09 for Q3 compared to -$0.17 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 60.6%, 560 basis points worse than the prior-year quarter. Operating margin was -5.6%, 330 basis points better than the prior-year quarter. Net margin was -6.4%, 870 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $83.4 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $309.6 million. The average EPS estimate is -$0.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 133 members out of 142 rating the stock outperform, and nine members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give ShoreTel a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ShoreTel is outperform, with an average price target of $6.21.
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