Avid Technology Beats Estimates on Top and Bottom Lines
Avid Technology (NAS: AVID) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Avid Technology beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased.
Gross margins grew, operating margins dropped, and net margins increased.
Avid Technology booked revenue of $185.3 million. The four analysts polled by S&P Capital IQ predicted a top line of $176.3 million. Sales were 5.1% lower than the prior-year quarter's $195.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.38. The four earnings estimates compiled by S&P Capital IQ predicted $0.15 per share on the same basis. GAAP EPS were $0.03 for Q4 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 54.5%, 40 basis points better than the prior-year quarter. Operating margin was 4.1%, 50 basis points worse than the prior-year quarter. Net margin was 0.7%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $169.7 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $689.2 million. The average EPS estimate is $0.38.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 84 members out of 122 rating the stock outperform, and 38 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Avid Technology a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avid Technology is hold, with an average price target of $9.88.
Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is Avid Technology on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Avid Technology to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.