Premiere Global Services Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Premiere Global Services (NYS: PGI) filed its 10-K on March 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Premiere Global Services beat slightly on revenue and missed estimates on earnings per share.

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

Gross margin shrank, operating margin increased, and net margin grew.

Revenue details
Premiere Global Services reported revenue of $118.7 million. The four analysts polled by S&P Capital IQ expected to see revenue of $116.7 million on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $108.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.02. The four earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS were $0.02 for Q4 versus -$0.20 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.5%, 70 basis points worse than the prior-year quarter. Operating margin was 9.7%, 440 basis points better than the prior-year quarter. Net margin was 0.9%, 1,100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $122.7 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $495.6 million. The average EPS estimate is $0.56.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 153 members out of 161 rating the stock outperform, and eight members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Premiere Global Services 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 Premiere Global Services is buy, with an average price target of $10.25.

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At the time thisarticle 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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