Harmonic: Here’s What Investors Need to Know Before Earnings

Harmonic (NASDAQ:HLIT) will report earnings after markets close on Tuesday, July 23rd. Harmonic Inc. designs, manufactures, and markets digital and fiber optic systems. The Company’s systems enable cable, satellite, and wireless operators to deliver video, Internet, telephony, and high-speed data services. Harmonic’s TRANsend digital product line combines and customizes content from a variety of sources.

Here is your Cheat Sheet to Harmonic Earnings:

Earnings Expectations: Analysts expect earnings of $0.01 per share on revenues of $108.71 million. Currently, the company’s P/E ratio stands at 271.54.

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 profit of $0.09 to a profit $0.05. For the current year, the average estimate is a profit of $0.13, which is worse than the estimate ninety days ago.

Earnings Trends:

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

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 365 320 423 549 530
Diluted EPS ($) 0.67 -0.25 -0.04 0.08 -0.09

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

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 132.63 136.68 133.43 101.67
Diluted EPS ($) 0.00 -0.07 0.04 0.06

Past Performance:
Harmonic has beat analyst estimates 1 time in the past four quarters. This is not consistent enough to get bullish yet.

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