SeaChange International Earnings: Here’s Why the Stock is Falling Now

SeaChange International Inc. (NASDAQ:SEAC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.53%.

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SeaChange International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.33% to $0.04 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Decreased 2.81% to $35.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SeaChange International Inc. reported adjusted EPS income of $0.04 per share. By that measure, the company beat the mean analyst estimate of $0.03. It beat the average revenue estimate of $35.25 million.

Quoting Management: “We’re pleased to have achieved the high end of our guidance for the first quarter chiefly through new product contribution and increased product licensing revenue, which boosted gross margins,” said Raghu Rau, Chief Executive Officer, SeaChange. “The results reflect the market traction SeaChange continues to achieve with our new generation of software, which drove new product revenue growth of 70 percent over last year’s first quarter.”

Key Stats (on next page)…

Revenue decreased 20.14% from $44.58 million in the previous quarter. EPS decreased 85.71% from $0.28 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 $0.15 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $0.69 to a profit of $0.65 over the last ninety days.

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