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ARRIS International (ARRS) Beats Earnings & Revenues in Q1

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ARRIS International plc’s first-quarter 2017 earnings (excluding special items) of 33 cents per share beat the Zacks Consensus Estimate by a penny. Earnings however declined 19.51% from the year-ago quarter.

Revenues of $1,483.1 million surpassed the Zacks Consensus Estimate of $1,474.5 million. However, the top line declined 8.15% on a year-over-year basis.

Performance Details

Quarterly gross margin (on an adjusted basis) of the Suwanee, GA-based company was 23.1%, compared with 25.8% in the year-ago quarter. Total order backlog at the end of the quarter under review was $1.304 billion, as compared with $1.335 billion at the end of the year-ago quarter. Additionally, book-to-bill ratio was 1.13, compared with 1.24 in the prior-year quarter.

At the end of the first quarter, ARRIS generated cash from operating activities of $250 million, compared with $223 million a year ago. The company exited the first quarter of 2017 with cash resources of approximately $1.217 billion, compared with $1.107 billion at the end of 2016. Long-term debt & financing lease obligations (net of current portion) was $2,159.3 million, compared with approximately $2,180 million at 2016-end.

Guidance

ARRIS expects earnings (adjusted) in the band of 55–60 cents in the second quarter of 2017. Revenues are expected in the band of $1,640–$1,690 million. The Zacks Consensus Estimate for second-quarter earnings is pegged at 51 cents on revenues of $1,670 million. For full-year 2017, earnings (adjusted) are expected in the band of $2.40–$2.60 and revenues in the range of $6,615 - $6,830 million. The Zacks Consensus Estimate for the same is pegged at $2.24 on revenues of $6,670 million.

ARRIS International PLC Price, Consensus and EPS Surprise

 

ARRIS International PLC Price, Consensus and EPS Surprise | ARRIS International PLC Quote

Zacks Rank & Key Picks

ARRIS currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Communication – Components sector are ShoreTel , UTStarcom Holdings (UTSI - Free Report) and Arista Networks (ANET - Free Report) . While ShoreTel and UTStarcom sport a Zacks Rank #1 (Strong Buy), Arista carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ShoreTel, UTStarcom and Arista gained 5.51%, 7.69% and 5.62%, respectively, in the last one month.

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