The Gory Details on Harmonic's Double Miss

Seth Jayson, The Motley Fool
Updated

Harmonic (NAS: HLIT) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 29 (Q2), Harmonic missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share didn't change.


Margins dropped across the board.

Revenue details
 Harmonic reported revenue of $132.6 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $135.0 million on the same basis. GAAP reported sales were 1.0% lower than the prior-year quarter's $134.0 million.

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 $0.06. The eight earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.00 were the same as the prior-year quarter.

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 43.4%, 270 basis points worse than the prior-year quarter. Operating margin was -1.8%, 280 basis points worse than the prior-year quarter. Net margin was 0.0%, 30 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $142.1 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $554.0 million. The average EPS estimate is $0.30.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 293 members out of 311 rating the stock outperform, and 18 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Harmonic a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harmonic is outperform, with an average price target of $6.04.

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The article The Gory Details on Harmonic's Double Miss originally appeared on Fool.com.

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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