The 10-second takeaway
For the quarter ended March 31 (Q1), Sourcefire missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share stayed the same. GAAP earnings per share didn't move.
Gross margins increased, operating margins dropped, net margins dropped.
Sourcefire booked revenue of $56.2 million. The 17 analysts polled by S&P Capital IQ predicted a top line of $57.4 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $46.3 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 $0.11. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. Non-GAAP EPS of $0.11 were the same as the prior-year quarter. GAAP EPS of $0.00 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.
For the quarter, gross margin was 76.5%, 10 basis points better than the prior-year quarter. Operating margin was -2.4%, 270 basis points worse than the prior-year quarter. Net margin was 0.0%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $62.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $278.5 million. The average EPS estimate is $0.96.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 185 rating the stock outperform, and 43 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Sourcefire a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sourcefire is outperform, with an average price target of $60.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Sourcefire. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.