ARRIS Group, Inc. Announces Sky-High Guidance, Lifting Shares 11% Higher

Before you go, we thought you'd like these...
Before you go close icon

Image source: Arris Group.

Shares of ARRIS Group jumped more than 11% higher in after-hours trading today, following the release of unaudited first-quarter results.

The broadband and video networking technologist reported adjusted earnings of $0.47 per diluted share on $1.22 billion in sales. Analysts were expecting $0.45 per share and $1.18 billion, respectively.

Both revenue and earnings jumped dramatically year-over-year, with the caveat that Arris acquired Motorola Home Solutions in the second quarter of 2013, reducing the value of direct year-ago comparisons at this point. Sales increased by 2%, compared to the fourth quarter of 2013. Earnings saw a 13% sequential drop.

Arris also recorded an order backlog of $1 billion, up from $513 million in the previous quarter. The book-to-bill ratio jumped from 1.01 to 1.37 in three months, giving the company more visibility on future revenue growth. As a reminder, book-to-bill ratios above 1.0 are generally seen as indicators of short-term sales growth.

On that basis, Arris set the midpoint of its second-quarter revenue guidance at $1.43 billion. Earnings guidance centered on $0.67 per share. These projections are much higher than the current Street view, which only calls for second-quarter earnings of $0.50 per share on $1.22 billion in sales.

"2014 is shaping up to be our best year so far," said Arris CEO Bob Stanzione in a prepared statement. "Continued product deployments, new product acceptances, and an expanding international interest will continue to drive overall improved performance."

The article ARRIS Group, Inc. Announces Sky-High Guidance, Lifting Shares 11% Higher originally appeared on

Anders Bylund has no position in any stocks mentioned. 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners