Cbeyond Posts a Surprise Profit
Cbeyond (NAS: CBEY) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Cbeyond met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins expanded, operating margins grew, net margins dropped.
Cbeyond logged revenue of $123.8 million. The one analyst polled by S&P Capital IQ expected sales of $124.0 million on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $119.0 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 $0.01. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.03 per share. GAAP EPS were -$0.04 for Q1 versus $0.00 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 67.3%, 60 basis points better than the prior-year quarter. Operating margin was -1.1%, 10 basis points better than the prior-year quarter. Net margin was -1.0%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $122.4 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $491.3 million. The average EPS estimate is -$0.04.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 101 members out of 132 rating the stock outperform, and 31 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Cbeyond a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cbeyond is hold, with an average price target of $10.07.
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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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