ARRIS International plc’s second-quarter 2017 earnings (excluding 39 cents from non-recurring items) of 55 cents per share topped the Zacks Consensus Estimate by 5 cents. However, the bottom line declined 32.1% from the year-ago quarter due to lower revenues.
Revenues of $1,664.2 million fell marginally short of the Zacks Consensus Estimate of $1,664.9 million. Moreover, the top line declined 3.81% on a year-over-year basis.
Performance Details
Quarterly gross margin (on an adjusted basis) of this Suwanee, GA-based company was 24.6% compared with 27.2% in the year-ago quarter. Total order backlog at the end of the quarter under review was $1.326 billion than $1.239 billion at the end of the year-ago quarter. Additionally, book-to-bill ratio was 1.01 compared with 0.94 in the prior-year quarter.
At the end of the second quarter, ARRIS generated cash from operating activities of $243.6 million compared with $260.8 million a year ago. In fact, the company exited the reported quarter with cash and cash equivalents of approximately $1.346 billion than $1.126 billion at the end of the previous quarter.
Long-term debt & financing lease obligations (net of current portion) was $2.134 billion, compared with approximately $2.18 billion at 2016-end. The company bought back 1.7 million shares for $44 million in the reported quarter.
Notably, ARRIS has bought back 4.9 million shares for $127 million so far this year.
Guidance
ARRIS expects earnings (adjusted) in the band of 66–71 cents in third-quarter 2017. Revenues are projected in the band of $1,740–$1,790 million. The Zacks Consensus Estimate for earnings is pegged at 50 cents on revenues of $1,660 million.
For full-year 2017, earnings (adjusted) are still anticipated 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 $2.19 on revenues of $6,710 million.
Zacks Rank & Stocks to Consider
ARRIS currently carries a Zacks Rank #3 (Hold). Investors interested in the broader Computer & Technology sector may consider BlackBerry Ltd. , Nokia Corporation (NOK - Free Report) and ADTRAN (ADTN - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of BlackBerry, Nokia and ADTRAN have gained over 37%, 35 and 3%, respectively, so far this year.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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ARRIS International plc’s second-quarter 2017 earnings (excluding 39 cents from non-recurring items) of 55 cents per share topped the Zacks Consensus Estimate by 5 cents. However, the bottom line declined 32.1% from the year-ago quarter due to lower revenues.
Revenues of $1,664.2 million fell marginally short of the Zacks Consensus Estimate of $1,664.9 million. Moreover, the top line declined 3.81% on a year-over-year basis.
Performance Details
Quarterly gross margin (on an adjusted basis) of this Suwanee, GA-based company was 24.6% compared with 27.2% in the year-ago quarter. Total order backlog at the end of the quarter under review was $1.326 billion than $1.239 billion at the end of the year-ago quarter. Additionally, book-to-bill ratio was 1.01 compared with 0.94 in the prior-year quarter.
At the end of the second quarter, ARRIS generated cash from operating activities of $243.6 million compared with $260.8 million a year ago. In fact, the company exited the reported quarter with cash and cash equivalents of approximately $1.346 billion than $1.126 billion at the end of the previous quarter.
Long-term debt & financing lease obligations (net of current portion) was $2.134 billion, compared with approximately $2.18 billion at 2016-end. The company bought back 1.7 million shares for $44 million in the reported quarter.
Notably, ARRIS has bought back 4.9 million shares for $127 million so far this year.
Guidance
ARRIS expects earnings (adjusted) in the band of 66–71 cents in third-quarter 2017. Revenues are projected in the band of $1,740–$1,790 million. The Zacks Consensus Estimate for earnings is pegged at 50 cents on revenues of $1,660 million.
For full-year 2017, earnings (adjusted) are still anticipated 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 $2.19 on revenues of $6,710 million.
Zacks Rank & Stocks to Consider
ARRIS currently carries a Zacks Rank #3 (Hold). Investors interested in the broader Computer & Technology sector may consider BlackBerry Ltd. , Nokia Corporation (NOK - Free Report) and ADTRAN (ADTN - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of BlackBerry, Nokia and ADTRAN have gained over 37%, 35 and 3%, respectively, so far this year.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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