Zix Beats on EPS but GAAP Results Lag
Zix (NAS: ZIXI) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Zix met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank significantly.
Gross margin shrank, operating margin expanded, and net margin dropped.
Zix logged revenue of $9.9 million. The three analysts polled by S&P Capital IQ looked for revenue of $9.8 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $8.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The three earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS of $0.23 for Q4 were 57% lower than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.3%, 90 basis points worse than the prior-year quarter. Operating margin was 29.7%, 840 basis points better than the prior-year quarter. Net margin was 151.4%, 26,950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.3 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $43.3 million. The average EPS estimate is $0.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Zix a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zix is buy, with an average price target of $3.81.
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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.