The Gory Details on Smart Technologies's Double Miss

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 18, 2013 at 12:00AM
Other

Smart Technologies (Nasdaq: SMT) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Smart Technologies missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP loss per share grew. GAAP loss per share increased.

Gross margins grew, operating margins shrank, net margins dropped.

Revenue details
Smart Technologies reported revenue of $105.2 million. The three analysts polled by S&P Capital IQ predicted net sales of $114.7 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $148.0 million.

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 -$0.10. The five earnings estimates compiled by S&P Capital IQ averaged -$0.05 per share. Non-GAAP EPS were -$0.10 for Q4 against -$0.04 per share for the prior-year quarter. GAAP EPS were -$0.16 for Q4 compared to -$0.02 per share for the prior-year quarter.

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 43.3%, 360 basis points better than the prior-year quarter. Operating margin was -12.5%, 680 basis points worse than the prior-year quarter. Net margin was -17.8%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $134.2 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $512.4 million. The average EPS estimate is $0.15.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 60 members out of 69 rating the stock outperform, and nine members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Smart Technologies 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 Smart Technologies is outperform, with an average price target of $2.45.

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