Mitel Networks Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Mitel Networks (NAS: MITL) filed its 10-K on June 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q4), Mitel Networks beat expectations on revenues and beat expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
Mitel Networks chalked up revenue of $157.6 million. The four analysts polled by S&P Capital IQ looked for net sales of $154.3 million on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $152.2 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 $0.29. The four earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.88 for Q4 were much higher than the prior-year quarter's $0.08 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

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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 55.6%, 340 basis points better than the prior-year quarter. Operating margin was 11.0%, 540 basis points better than the prior-year quarter. Net margin was 31.2%, 2,830 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $153.7 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $633.2 million. The average EPS estimate is $1.05.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 17 members out of 21 rating the stock outperform, and four members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Mitel Networks 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 Mitel Networks is buy, with an average price target of $5.00.

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The article Mitel Networks Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jaysonhad 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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