ShoreTel Earnings: Here’s Why Investors are Buying Shares Now

ShoreTel, Inc. (NASDAQ:SHOR) had a loss 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 up 5.26%.

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

ShoreTel, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.01 in the quarter versus EPS of $-0.03 in the year-earlier quarter.

Revenue: Rose 39.08% to $78.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ShoreTel, Inc. reported adjusted EPS loss of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.05. It beat the average revenue estimate of $75.21 million.

Quoting Management: “Rapid expansion in the cloud market this quarter was complemented by steady growth in our premise business. With both of our business lines thriving, we delivered non-GAAP operating profitability for the company,” said Peter Blackmore, CEO of ShoreTel. “ShoreTel Sky generated a 28 percent year-over-year increase in revenue, signed a record number of new customers, and continues to have a best-in-class customer retention rate.”

Key Stats (on next page)…

Revenue increased 4.9% from $74.64 million in the previous quarter. EPS increased to $-0.01 in the quarter versus EPS of $-0.04 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 $0.05 to a profit $0.01. For the current year, the average estimate has moved down from a loss of $0.02 to a loss of $0.13 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)

More Articles About:   , , ,  

More from The Cheat Sheet