Will ShoreTel Beat These Analyst Estimates?

ShoreTel (Nasdaq: SHOR  ) is expected to report Q2 earnings on Jan. 30. 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 ShoreTel's revenues will expand 34.2% and EPS will shrink to a loss.

The average estimate for revenue is $77.9 million. On the bottom line, the average EPS estimate is -$0.03.

Revenue details
Last quarter, ShoreTel reported revenue of $75.0 million. GAAP reported sales were 39% higher than the prior-year quarter's $53.9 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 -$0.04. GAAP EPS were -$0.14 for Q1 compared to -$0.10 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 61.2%, 470 basis points worse than the prior-year quarter. Operating margin was -9.4%, 160 basis points worse than the prior-year quarter. Net margin was -10.7%, 210 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $317.0 million. The average EPS estimate is -$0.02.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 133 members out of 141 rating the stock outperform, and eight members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give ShoreTel a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ShoreTel is outperform, with an average price target of $7.17.

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