Mitel Networks Earnings: Here’s Why the Stock is Rising Now

Mitel Networks Corp. (NASDAQ:MITL) delivered a profit 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 up 10.62%.

Mitel Networks Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 112.5% to $0.17 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Rose 2.24% to $141.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mitel Networks Corp. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.15. It missed the average revenue estimate of $143.5 million.

Quoting Management: “We are pleased to have achieved year-over-year revenue growth and record gross margins in the first quarter,” said Richard McBee, Chief Executive Officer, Mitel. “Our operating results reflect the growing traction of our cloud business as well as the strength of our unified communications software solutions, which serve as the foundation for us to grow in our target markets.”

Key Stats (on next page)…

Revenue decreased 6.16% from $150.9 million in the previous quarter. EPS decreased 32% from $0.25 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 profit of $0.24 to a profit $0.21. For the current year, the average estimate has moved down from a profit of $0.95 to a profit of $0.89 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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