Meru Networks Earnings: Here’s Why Shares are Down Now
Meru Networks, Inc. (NASDAQ:MERU) 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. Shares are down 1.01%.
Meru Networks, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.05 in the quarter versus EPS of $-0.26 in the year-earlier quarter.
Revenue: Rose 7.96% to $26.45 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Meru Networks, Inc. reported adjusted EPS loss of $0.05 per share. By that measure, the company beat the mean analyst estimate of $-0.08. It missed the average revenue estimate of $27.11 million.
Quoting Management: “We are very pleased to announce another successful quarter for our growing company,” said Dr. Bami Bastani, president and CEO, Meru Networks. “Our 2013 second quarter was a record Q2 for revenues for Meru, driven by continued focus on our three target vertical markets, education, healthcare and hospitality.”
Key Stats (on next page)…
Revenue increased 6.91% from $24.74 million in the previous quarter. EPS decreased to $-0.05 in the quarter versus EPS of $-0.10 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 loss of $0.03 and has not changed. For the current year, the average estimate has moved up from a loss of $0.2 to a loss of $0.17 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)