The 10-second takeaway
For the quarter ended March 31 (Q4), Black Box beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share expanded. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins grew, net margins dropped.
Black Box chalked up revenue of $237.7 million. The one analyst polled by S&P Capital IQ predicted revenue of $232.2 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $256.0 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 $0.67. The one earnings estimate compiled by S&P Capital IQ predicted $0.54 per share. Non-GAAP EPS of $0.67 for Q4 were 3.1% higher than the prior-year quarter's $0.65 per share. GAAP EPS of $0.45 for Q4 were 29% lower than the prior-year quarter's $0.63 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 33.2%, 90 basis points better than the prior-year quarter. Operating margin was 7.2%, 80 basis points better than the prior-year quarter. Net margin was 3.0%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $240.1 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.00 billion. The average EPS estimate is $2.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 68 members out of 81 rating the stock outperform, and 13 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Black Box a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Box is buy, with an average price target of $29.00.
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