Globecomm Systems Beats Up on Analysts Yet Again

Globecomm Systems (Nasdaq: GCOM  ) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Globecomm Systems beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share grew significantly.

Gross margins shrank, operating margins improved, and net margins improved.

Revenue details
Globecomm Systems recorded revenue of $95.2 million. The three analysts polled by S&P Capital IQ predicted sales of $89.3 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $70.2 million.

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

EPS details
EPS came in at $0.41. The three earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.41 for Q2 were 413% higher than the prior-year quarter's $0.08 per share.

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

Margin details
For the quarter, gross margin was 24.2%, 60 basis points worse than the prior-year quarter. Operating margin was 8.4%, 130 basis points better than the prior-year quarter. Net margin was 9.7%, 730 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $100.3 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $374.8 million. The average EPS estimate is $1.11.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 192 members rating the stock outperform and 10 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Globecomm Systems 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 Globecomm Systems is outperform, with an average price target of $17.33.

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