Sonus Networks Inc. Third Quarter Earnings Sneak Peek

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Sonus Networks, Inc. (NASDAQ:SONS) will unveil its latest earnings on Thursday, October 27, 2011. Sonus Networks is a provider of voice infrastructure solutions for wireline and wireless service providers.

Sonus Networks, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of one cent per share, a swing from a loss of 8 cents in the year earlier quarter. During the past three months, the average estimate has moved up from breaking even. Between one and three months ago, the average estimate moved up. It has been unchanged at one cent during the last month.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by 3 cents as a result of reporting net loss of 2 cents against an estimate of profit of one cent per share. In the first quarter, the company fell short of forecasts by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $64.9 million in revenue this quarter, a rise of 51.8% from the year ago quarter. Analysts are forecasting total revenue of $265.7 million for the year, a rise of 6.6% from last year’s revenue of $249.3 million.

Analyst Ratings: Analysts seem relatively indifferent about Sonus Networks with four of four analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, the company swung to a loss of $5.9 million (2 cents a share) from a profit of $311,000 (0 cents) a year earlier, missing analyst expectations. Revenue fell 15.4% to $51.8 million from $61.2 million.

Key Stats:

A year-over-year revenue decrease in the second quarter snapped a streak of two consecutive quarters of revenue increases. Revenue rose 7.8% in the first quarter and 20.8% in the fourth quarter of the last fiscal year.

Competitors to Watch: Alcatel-Lucent (NYSE:ALU), Cisco Systems, Inc. (NASDAQ:CSCO), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), TEKELEC (NASDAQ:TKLC), Tellabs, Inc. (NASDAQ:TLAB), Ditech Networks Inc. (NASDAQ:DITC), Symmetricom, Inc. (NASDAQ:SYMM), Sycamore Networks, Inc. (NASDAQ:SCMR), Performance Technologies (NASDAQ:PTIX), and Juniper Networks, Inc. (NYSE:JNPR).

Stock Price Performance: During July 28, 2011 to October 21, 2011, the stock price had fallen 74 cents (-24.8%) from $2.98 to $2.24. It saw one of its worst periods between January 14, 2011 and January 25, 2011 when shares fell for seven-straight days, falling 11.4% (-36 cents) over that span. The stock price saw one of its best stretches over the last year between August 25, 2011 and August 31, 2011 when shares rose for five-straight days, rising 12.1% (+28 cents) over that span. Shares are down 43 cents (-16.1%) year to date.

(Source: Xignite Financials)

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

 

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