Does The Street Have Harmonic Figured Out?

Harmonic (NAS: HLIT) is expected to report Q2 earnings on July 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Harmonic's revenues will decrease -17.6% and EPS will decrease -66.7%.

The average estimate for revenue is $109.3 million. On the bottom line, the average EPS estimate is $0.02.


Revenue details
Last quarter, Harmonic logged revenue of $101.7 million. GAAP reported sales were 13% lower than the prior-year quarter's $116.4 million.

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

EPS details
Last quarter, non-GAAP EPS came in at -$0.02. GAAP EPS were $0.06 for Q1 versus -$0.06 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 45.5%, 220 basis points better than the prior-year quarter. Operating margin was -14.1%, 560 basis points worse than the prior-year quarter. Net margin was 6.3%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $457.8 million. The average EPS estimate is $0.15.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 290 members out of 309 rating the stock outperform, and 19 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Harmonic a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harmonic is hold, with an average price target of $5.75.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Harmonic 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.

The article Does The Street Have Harmonic Figured Out? 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. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs 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.