Synchronoss Technologies Earnings Preview

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Synchronoss Technologies (NAS: SNCR) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Tuesday, Feb. 7. Synchronoss Technologies is a provider of multi-channel transaction management solutions to the communications services and digital content marketplaces.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Synchronoss Technologies, with nine of 10 rating it a buy and the remainder rating it a hold. Analysts like Synchronoss Technologies better than competitor AsiaInfo-Linkage overall. Analysts' rating of Synchronoss Technologies has stayed constant from three months prior.
  • Revenue forecasts: On average, analysts predict $61.5 million in revenue this quarter. That would represent a rise of 20.2% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.14 per share. Estimates range from $0.12 to $0.16.

What our community says:
CAPS All-Stars are enthusiastically backing the stock, with 98.5% awarding it an "outperform" rating. The community at large is in line with the All-Stars, with 94.5% giving it a rating of "outperform." Fools are gung-ho about Synchronoss Technologies and haven't been shy with their opinions lately, logging 179 posts in the past 30 days. Even with a robust four out of five stars, Synchronoss Technologies' CAPS rating falls a little short of the community's upbeat outlook.

Management:
The company increased its gross margin by 4.8 percentage points in the last quarter. Revenue rose 33.3% while cost of sales rose 20.9% to $27.8 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The company's gross margins have been increasing year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. Here are Synchronoss Technologies' reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

53.1%

52.8%

53.5%

52.1%

Operating Margin

8.5%

8.4%

3.3%

(6.6%)

Net Margin

6.0%

5.8%

0.3%

(8.0%)

One final thing: If you want to keep tabs on Synchronoss Technologies movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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