Can DragonWave Meet These Numbers?

DragonWave (Nasdaq: DRWI  ) is expected to report Q1 earnings on July 10. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DragonWave's revenues will grow 129.5% and EPS will remain in the red.

The average estimate for revenue is $29.3 million. On the bottom line, the average EPS estimate is -$0.34.

Revenue details
Last quarter, DragonWave logged revenue of $28.3 million. GAAP reported sales were much higher than the prior-year quarter's $9.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.71. GAAP EPS were -$0.71 for Q4 versus -$0.38 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 5.3%, 720 basis points worse than the prior-year quarter. Operating margin was -62.9%, much better than the prior-year quarter. Net margin was -96.1%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $152.7 million. The average EPS estimate is -$0.83.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 242 members out of 257 rating the stock outperform, and 15 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give DragonWave a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DragonWave is underperform, with an average price target of $2.19.

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