Arris Group Beats on Both Top and Bottom Lines
Arris Group (NAS: ARRS) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Arris Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share was unchanged.
Margins dropped across the board.
Arris Group booked revenue of $349.3 million. The eight analysts polled by S&P Capital IQ anticipated sales of $340.4 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $265.8 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 $0.25. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS of $0.13 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.
For the quarter, gross margin was 33.9%, 630 basis points worse than the prior-year quarter. Operating margin was 8.0%, 160 basis points worse than the prior-year quarter. Net margin was 4.3%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $343.1 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $0.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 750 members out of 780 rating the stock outperform, and 30 members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give Arris Group a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arris Group is outperform, with an average price target of $14.31.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Arris Group fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Arris Group to My Watchlist.
The article Arris Group Beats on Both Top and Bottom Lines 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.