The 10-second takeaway
For the quarter ended June 29 (Q2), Calix missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP loss per share dropped.
Margins increased across the board.
Calix booked revenue of $94.4 million. The seven analysts polled by S&P Capital IQ expected sales of $96.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $78.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.10. The eight earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. Non-GAAP EPS of $0.10 for Q2 were 150% higher than the prior-year quarter's $0.04 per share. GAAP EPS were -$0.10 for Q2 versus -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 47.2%, 250 basis points better than the prior-year quarter. Operating margin was -5.1%, 360 basis points better than the prior-year quarter. Net margin was -5.5%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $104.4 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $403.8 million. The average EPS estimate is $0.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 67 members out of 74 rating the stock outperform, and seven members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Calix 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 Calix is outperform, with an average price target of $11.80.
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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. 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.