Smart Technologies Goes Red

Seth Jayson, The Motley Fool
Updated

Smart Technologies (NAS: SMT) reported earnings on Thursday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Smart Technologies missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
Smart Technologies reported revenue of $148.0 million. The five analysts polled by S&P Capital IQ anticipated revenue of $157.1 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $167.3 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 -$0.04. The three earnings estimates compiled by S&P Capital IQ anticipated $0.03 per share. GAAP EPS were -$0.02 for Q4 compared to $0.06 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 39.7%, 680 basis points worse than the prior-year quarter. Operating margin was -5.6%, 740 basis points worse than the prior-year quarter. Net margin was -1.8%, 630 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $190.5 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $729.8 million. The average EPS estimate is $0.28.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 61 members rating the stock outperform and 11 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Smart Technologies 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 Smart Technologies is hold, with an average price target of $6.49.

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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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