The 10-second takeaway
For the quarter ended March 31 (Q3), Globecomm Systems missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins dropped, net margins expanded.
Globecomm Systems chalked up revenue of $78.1 million. The three analysts polled by S&P Capital IQ expected a top line of $82.1 million on the same basis. GAAP reported sales were 30% lower than the prior-year quarter's $110.9 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 $0.18. The three earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. GAAP EPS of $0.18 for Q3 were 38% higher than the prior-year quarter's $0.13 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 25.9%, 450 basis points better than the prior-year quarter. Operating margin was 8.3%, 10 basis points worse than the prior-year quarter. Net margin was 5.3%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $86.6 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $329.6 million. The average EPS estimate is $0.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 200 members out of 209 rating the stock outperform, and nine members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Globecomm Systems a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Globecomm Systems is outperform, with an average price target of $15.09.
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