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Oplink Communications (Nasdaq: OPLK) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Oplink Communications met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share expanded significantly. GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins grew, net margins dropped.
Revenue details
Oplink Communications recorded revenue of $44.1 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $43.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.18. The four earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. Non-GAAP EPS of $0.18 for Q3 were 38% higher than the prior-year quarter's $0.13 per share. GAAP EPS of $0.11 for Q3 were 21% 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.
Margin details
For the quarter, gross margin was 35.5%, 480 basis points better than the prior-year quarter. Operating margin was 5.1%, 100 basis points better than the prior-year quarter. Net margin was 4.6%, 190 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $46.3 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $180.2 million. The average EPS estimate is $0.90.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 177 rating the stock outperform, and 21 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Oplink Communications a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oplink Communications is buy, with an average price target of $22.54.
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