DragonWave Whiffs on Revenues
DragonWave (NAS: DRWI) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q4), DragonWave whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share increased.
Margins dropped across the board.
DragonWave logged revenue of $9.1 million. The eight analysts polled by S&P Capital IQ looked for revenue of $10.5 million on the same basis. GAAP reported sales were 39% lower than the prior-year quarter's $15.1 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 -$0.38. The five earnings estimates compiled by S&P Capital IQ averaged -$0.25 per share. GAAP EPS were -$0.38 for Q4 versus -$0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.5%, 1,670 basis points worse than the prior-year quarter. Operating margin was -141.5%, 8,380 basis points worse than the prior-year quarter. Net margin was -146.1%, 8,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.4 million. On the bottom line, the average EPS estimate is -$0.23.
Next year's average estimate for revenue is $313.8 million. The average EPS estimate is -$0.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 259 members out of 271 rating the stock outperform, and 12 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give DragonWave a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DragonWave is hold, with an average price target of $4.65.
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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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