Web.com Group (Nasdaq: WWWW ) reported earnings on Aug. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Web.com Group whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share expanded.
Gross margins improved, operating margins shrank, net margins shrank.
Web.com Group reported revenue of $98.9 million. The 11 analysts polled by S&P Capital IQ predicted net sales of $114.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $42.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.38. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS were -$0.41 for Q2 versus -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.8%, 160 basis points better than the prior-year quarter. Operating margin was -10.9%, 990 basis points worse than the prior-year quarter. Net margin was -19.3%, 1,490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $120.0 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $471.1 million. The average EPS estimate is $1.54.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 121 members out of 149 rating the stock outperform, and 28 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Web.com Group a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Web.com Group is buy, with an average price target of $20.36.
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