The 10-second takeaway
For the quarter ended March 31 (Q1), Synchronoss Technologies beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins shrank, net margins dropped.
Synchronoss Technologies booked revenue of $78.3 million. The 12 analysts polled by S&P Capital IQ expected net sales of $76.6 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $64.6 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 $0.28. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. Non-GAAP EPS of $0.28 for Q1 were 7.7% higher than the prior-year quarter's $0.26 per share. GAAP EPS of $0.01 for Q1 were 93% lower than the prior-year quarter's $0.14 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 59.0%, 330 basis points better than the prior-year quarter. Operating margin was 7.4%, 420 basis points worse than the prior-year quarter. Net margin was 0.6%, 790 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $81.9 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $341.9 million. The average EPS estimate is $1.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 449 members out of 475 rating the stock outperform, and 26 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Synchronoss Technologies 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 Synchronoss Technologies is outperform, with an average price target of $34.09.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Synchronoss Technologies makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Synchronoss Technologies to My Watchlist.
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 has no position in any of the stocks mentioned. 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.