Black Box Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Black Box (NAS: BBOX) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 29 (Q1), Black Box beat expectations on revenues and missed estimates on earnings per share.

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


Gross margins shrank, operating margins dropped, net margins increased.

Revenue details
 Black Box reported revenue of $246.9 million. The one analyst polled by S&P Capital IQ predicted revenue of $240.1 million on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $247.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $0.54. The one earnings estimate compiled by S&P Capital IQ forecast $0.56 per share. Non-GAAP EPS of $0.54 for Q1 were 3.6% lower than the prior-year quarter's $0.56 per share. GAAP EPS of $0.43 for Q1 were 26% higher than the prior-year quarter's $0.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 31.2%, 80 basis points worse than the prior-year quarter. Operating margin was 5.0%, 60 basis points worse than the prior-year quarter. Net margin was 2.8%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $255.7 million. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $1.00 billion. The average EPS estimate is $2.80.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 69 members out of 83 rating the stock outperform, and 14 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Black Box 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 Black Box is buy, with an average price target of $31.00.

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The article Black Box Misses Where it Counts 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. The Motley Fool has no position in any of the stocks mentioned. 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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Originally published