Ceragon Networks Meets on Revenues, Misses on EPS

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Ceragon Networks (NAS: CRNT) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ceragon Networks met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share contracted.


Gross margins shrank, operating margins shrank, and net margins expanded.

Revenue details
Ceragon Networks recorded revenue of $117.8 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $117.6 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $100.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The nine earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS were -$0.10 for Q1 compared to -$0.60 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.4%, 70 basis points worse than the prior-year quarter. Operating margin was -1.9%, 10 basis points worse than the prior-year quarter. Net margin was -2.9%, 1,840 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $120.7 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $494.3 million. The average EPS estimate is $0.54.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,467 members rating the stock outperform and 34 members rating it underperform. Among 309 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 305 give Ceragon Networks a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ceragon Networks is outperform, with an average price target of $12.25.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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