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.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Black Box fit in anymore? 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 Black Box 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.