Can Allot Communications Beat These Numbers?

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Allot Communications (NAS: ALLT) is expected to report Q2 earnings on Aug. 6. 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 Allot Communications's revenues will decrease -0.9% and EPS will wither -60.0%.

The average estimate for revenue is $26.2 million. On the bottom line, the average EPS estimate is $0.06.


Revenue details
Last quarter, Allot Communications recorded revenue of $24.1 million. GAAP reported sales were 0.4% lower than the prior-year quarter's $24.2 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 details
Last quarter, non-GAAP EPS came in at $0.02. GAAP EPS were -$0.06 for Q1 against $0.10 per share for the prior-year quarter.

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.

Recent performance
For the preceding quarter, gross margin was 72.0%, 50 basis points better than the prior-year quarter. Operating margin was -8.2%, much worse than the prior-year quarter. Net margin was -7.7%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $112.1 million. The average EPS estimate is $0.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 120 members out of 128 rating the stock outperform, and eight members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Allot Communications 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 Allot Communications is outperform, with an average price target of $20.00.

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The article Can Allot Communications Beat These Numbers? 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 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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