8x8 Hits Estimates, But GAAP Results Lag Last Year's
Jan 25th 2013 9:00AM
Updated Jan 25th 2013 9:05AM
8x8 (NAS: EGHT) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), 8x8 met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped.
Gross margins expanded, operating margins dropped, net margins shrank.
8x8 reported revenue of $27.3 million. The eight analysts polled by S&P Capital IQ foresaw sales of $27.3 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $23.3 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 $0.05. The seven earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.03 for Q3 were 25% lower than the prior-year quarter's $0.04 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 68.3%, 40 basis points better than the prior-year quarter. Operating margin was 10.1%, 90 basis points worse than the prior-year quarter. Net margin was 7.0%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $28.4 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $107.3 million. The average EPS estimate is $0.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 325 members out of 338 rating the stock outperform, and 13 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give 8x8 a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 8x8 is outperform, with an average price target of $7.87.
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The article 8x8 Hits Estimates, But GAAP Results Lag Last Year's originally appeared on Fool.com.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.
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