Ceragon Networks Earnings: Everything You Must Know Now

Ceragon Networks Ltd. (NASDAQ:CRNT) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Ceragon Networks Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.16 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Decreased 23.5% to $90.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ceragon Networks Ltd. reported adjusted EPS loss of $0.16 per share. By that measure, the company missed the mean analyst estimate of $-0.1. It missed the average revenue estimate of $94.89 million.

Quoting Management: “Our financial results for the first quarter of 2013 reflect longer sales cycles,” said Ira Palti, President and CEO of Ceragon. “The outlook remains the same as we indicated on April 8th. We are not seeing carriers cancelling or reducing the scope of their planned projects, and the delays in closing deals relate mainly to operator hesitation during a period of reevaluating business models with a network architecture transition on the horizon.
“Meanwhile, the response to our new product line from initial evaluations is very encouraging, and we expect to be able to capitalize on our leadership position beginning next year when the transition to new architectures expands beyond early adopters.”

Key Stats (on next page)…

Revenue decreased 1.82% from $91.77 million in the previous quarter. EPS decreased to $-0.16 in the quarter versus EPS of $0.01 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.09 to a loss $0.06. For the current year, the average estimate has moved down from a profit of $0.42 to a loss of $0.08 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)