OPNET Technologies Increases Sales but Misses Estimates on Earnings

OPNET Technologies (NAS: OPNT) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), OPNET Technologies met expectations on revenues and missed expectations on earnings per share.

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

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

Revenue details
OPNET Technologies booked revenue of $46.0 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $46.4 million. Sales were 16% higher than the prior-year quarter's $39.7 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.23. The seven earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS of $0.23 for Q3 were 21% higher than the prior-year quarter's $0.19 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 78.5%, 170 basis points worse than the prior-year quarter. Operating margin was 18.0%, 390 basis points better than the prior-year quarter. Net margin was 11.6%, 70 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $48.0 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $176.4 million. The average EPS estimate is $0.93.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 135 members out of 142 rating the stock outperform, and seven members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give OPNET Technologies a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OPNET Technologies is outperform, with an average price target of $44.66.

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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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