ARRIS International plc’s (NASDAQ:ARRS) third-quarter 2016 earnings (excluding special items) of 70 cents per share came in line with the Zacks Consensus Estimate. The quarterly earnings improved significantly from the year-ago quarter.
Revenues of $1,735 million missed the Zacks Consensus Estimate of $1,735 million. Nonetheless, the top line surged 41% year over year. The quarterly results were benefitted by the acquisition of Pace plc.
Quarterly Performance Details
Quarterly gross margin (on an adjusted basis) of the Suwanee, GA-based company was 25.7% compared with 29.4% in the year-ago quarter. Total order backlog at the end of the quarter under review was $1.034 billion as against $559 million at the end of the year-ago quarter. Book-to-bill ratio was 0.88 compared with 0.92 in the prior-year quarter.
At the end of the third quarter, ARRIS’ cash from operations totaled $297 million as against $208 million in the prior-year quarter. The company exited the quarter with cash, cash equivalents and short-term investments of approximately $1,110 million compared with $879.1 million at the end of 2015. Long-term debt & financing lease obligations (net of current portion) was $2,201 million compared with approximately $1,496.3 million at year-end 2015.
The Zacks Rank #3 (Hold) company continues to face increasing competition from peers like Acacia Communications (NASDAQ:ACIA) , Harmonic Inc. (NASDAQ:HLIT) and Vocera Communications Inc. (NYSE:VCRA) .You can see the complete list of today’s Zacks #1 Rank stocks here.
Fourth-Quarter Guidance
The company expects earnings per share (on an adjusted basis) in the range of 68 cents to 72 cents for the fourth quarter. Revenues are projected in the range of $1,675 million to $1,725 million. The Zacks Consensus Estimate for earnings is pegged at 71 cents per share for revenues of $1,690 million.
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ARRIS INTL PLC (ARRS): Free Stock Analysis Report
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