SeaChange International Whiffs on Revenue
SeaChange International (NAS: SEAC) reported earnings on June 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q1), SeaChange International whiffed on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share grew.
Gross margin improved, operating margin dropped, and net margin dropped.
SeaChange International reported revenue of $36.6 million. The three analysts polled by S&P Capital IQ expected to see sales of $41.7 million on the same basis. GAAP reported sales were 30% lower than the prior-year quarter's $52.1 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 $0.08. The three earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were -$0.60 for Q1 versus -$0.01 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 55.0%, 720 basis points better than the prior-year quarter. Operating margin was -3.1%, 150 basis points worse than the prior-year quarter. Net margin was -53.5%, 5,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $39.8 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $170.5 million. The average EPS estimate is $0.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 158 members out of 165 rating the stock outperform, and seven members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give SeaChange International 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 SeaChange International is outperform, with an average price target of $10.50.
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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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