DragonWave Earnings: Everything You Must Know Now

DragonWave Inc. (NASDAQ:DRWI) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

DragonWave Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.17 in the quarter versus EPS of $-0.03 in the year-earlier quarter.

Revenue: Rose 89.13% to $24.53 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DragonWave Inc. reported adjusted EPS loss of $0.17 per share. By that measure, the company beat the mean analyst estimate of $-0.24. It missed the average revenue estimate of $34.94 million.

Quoting Management: “We have made progress on multiple fronts. We are working hard with Nokia Siemens Networks to build the sales funnel for microwave, progressing our direct relationships particularly in the United States and India, advancing in the important area of small cell backhaul, and our operating expenses are declining as we complete our integration and restructuring activities” said DragonWave President and CEO, Peter Allen. “We will continue to have a strong focus on revenue growth and improving our margins.”

Key Stats (on next page)…

Revenue decreased 13.29% from $28.29 million in the previous quarter. EPS increased to $-0.17 in the quarter versus EPS of $-0.31 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 loss of $0.12 to a loss $0.19. For the current year, the average estimate has moved down from a loss of $0.55 to a loss of $0.9 over the last ninety days.

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