Are You Expecting This from Websense?

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Websense (NAS: WBSN) is expected to report Q3 earnings on Oct. 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Websense's revenues will shrink -3.3% and EPS will wane -11.4%.

The average estimate for revenue is $89.1 million. On the bottom line, the average EPS estimate is $0.39.


Revenue details
Last quarter, Websense chalked up revenue of $89.9 million. GAAP reported sales were 0.9% lower than the prior-year quarter's $90.7 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.39. GAAP EPS of $0.21 for Q2 were 91% higher than the prior-year quarter's $0.11 per share.

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

Recent performance
For the preceding quarter, gross margin was 83.6%, 20 basis points better than the prior-year quarter. Operating margin was 12.7%, 220 basis points better than the prior-year quarter. Net margin was 8.8%, 400 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $360.9 million. The average EPS estimate is $1.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 84 members out of 104 rating the stock outperform, and 20 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Websense a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Websense is hold, with an average price target of $20.44.

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The article Are You Expecting This from Websense? 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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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