The 10-second takeaway
For the quarter ended June 30 (Q2), Cbeyond met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share contracted to zero.
Margins shrank across the board.
Cbeyond notched revenue of $118.2 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $119.5 million on the same basis. GAAP reported sales were 4.5% lower than the prior-year quarter's $123.8 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 $0.00. The 11 earnings estimates compiled by S&P Capital IQ averaged -$0.05 per share. GAAP EPS shrank to zero from the prior-year quarter's $0.09.
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 66.6%, 90 basis points worse than the prior-year quarter. Operating margin was 0.4%, 440 basis points worse than the prior-year quarter. Net margin was 0.0%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $119.1 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $478.0 million. The average EPS estimate is -$0.18.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 103 members out of 138 rating the stock outperform, and 35 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Cbeyond a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cbeyond is hold, with an average price target of $9.14.
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