BroadSoft Outruns Estimates Again
BroadSoft (NAS: BSFT) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), BroadSoft beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share dropped significantly.
Margins dropped across the board.
BroadSoft notched revenue of $40.6 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $37 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $35.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.38. The nine earnings estimates compiled by S&P Capital IQ predicted $0.28 per share on the same basis. GAAP EPS of $0.19 for Q4 were 54% lower than the prior-year quarter's $0.41 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 84.6%, 120 basis points worse than the prior-year quarter. Operating margin was 20.9%, 1,350 basis points worse than the prior-year quarter. Net margin was 13.5%, 1,780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $35.1 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $163.5 million. The average EPS estimate is $1.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 40 members rating the stock outperform and 102 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give BroadSoft a green thumbs-up, and 43 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BroadSoft is outperform, with an average price target of $41.06.
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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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