Globecomm Systems Inc. (NASDAQ:GCOM) delivered a profit 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.
Globecomm Systems Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 28% to $0.18 in the quarter versus EPS of $0.25 in the year-earlier quarter.
Revenue: Decreased 29.6% to $78.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Globecomm Systems Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company missed the mean analyst estimate of $0.19. It missed the average revenue estimate of $88 million.
Quoting Management: David Hershberg, Chairman and CEO, said: “Despite several on-going challenges, specifically in the government marketplace, including the withdrawal of military forces in Iraq, government efforts to reduce its expenditures in upcoming budgets and the added pressure of the recent sequestration, Globecomm has met our plan for this quarter. Sequestration provides for an uncertain backdrop for government contracts; however at this time, we continue to see strong government service contract renewals, and we remain focused on executing on our overall business plan and vision. Globecomm’s Tempo platform continues to be well received and we continue to look for upsell opportunities supporting digital signage and “over the top” solutions. We also have a strong pipeline of infrastructure opportunities within our media segment, which bodes well for the coming fiscal year.”
Key Stats (on next page)…
Revenue decreased 2.06% from $79.74 million in the previous quarter. EPS increased 5.88% from $0.17 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.20 and has not changed. For the current year, the average estimate is a profit of $0.67, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)