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, 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 9.55%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

SeaChange International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 75% to $0.28 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 5.66% to $44.58 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SeaChange International Inc. reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.2. It missed the average revenue estimate of $44.69 million.

Quoting Management: “We’re very pleased with our results in the quarter, led by a strong double-digit sequential increase in revenue, non-GAAP operating income of 21% and significant cash generation,” said Raghu Rau, Chief Executive Officer, SeaChange. “The strong performance during the quarter and for the full year was driven by sales of our new products, increased product licensing revenues and aggressive cost reduction actions. These achievements underscore the noteworthy progress SeaChange has made across products, sales and operations since announcing our transformation strategy last year.”

Key Stats (on next page)…

Revenue increased 13.58% from $39.25 million in the previous quarter. EPS increased 211.11% from $0.09 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 $0.15 and has not changed. For the current year, the average estimate is a profit of $0.4, which is the same with that ninety days ago.

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]