Ceragon Networks Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

Ceragon Networks (NAS: CRNT) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ceragon Networks met expectations on revenues and missed estimates on earnings per share.

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


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

Revenue details
Ceragon Networks recorded revenue of $117.8 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $117.6 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $100.3 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 $0.05. The nine earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS were -$0.10 for Q1 compared to -$0.60 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 31.4%, 70 basis points worse than the prior-year quarter. Operating margin was -1.9%, 10 basis points worse than the prior-year quarter. Net margin was -2.9%, 1,840 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $120.7 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $494.3 million. The average EPS estimate is $0.54.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,467 members rating the stock outperform and 34 members rating it underperform. Among 309 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 305 give Ceragon Networks a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ceragon Networks is outperform, with an average price target of $12.25.

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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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