Dragonwave Earnings: What Investors Should Watch

Dragonwave (NASDAQ:DRWI) will report earnings after markets close on Wednesday, July 10th. DragonWave Inc. provides wireless Ethernet equipment for use in IP networks. The Company designs, develops, and markets carrier-grade microwave radio frequency networking equipment that wirelessly transmit broadband voice, video, and other data.

Here is your Cheat Sheet to Dragonwave Earnings:

Earnings Expectations: Analysts expect earnings of $-0.31 per share on revenues of $29.92 million.

Analyst Trends:

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 $0.19 to a loss $0.24. For the current year, the average estimate is a loss of $0.9, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Dragonwave has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 40 155 118 46 124
Diluted EPS ($) -0.18 0.88 0.05 -0.94 -1.46

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter May. 31, 2012 Aug. 31, 2012 Nov. 30, 2012 Feb. 28, 2013
Revenue ($) in millions 12.97 44.16 38.45 28.29
Diluted EPS ($) -0.35 -0.03 -0.36 -0.71

Past Performance:
Dragonwave has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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