EarthLink Cut Short: Fool by Numbers

On Oct. 19, EarthLink (Nasdaq: ELNK  ) released Q3 earnings for the period ended Sept. 30.

• Revenues missed estimates, coming in at $331 million, while EPS fell to a loss of $0.02.
• Revenue growth was driven by expansion in broadband service and advertising revenues.
• Come back Monday for full analysis from Fool Alyce Lomax.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$333	$331	$317	4.5%
Net Profit	--	($3)	$36	N/A
EPS	$0.01	($0.02)	$0.27	N/A
Diluted Shares	--	128	135	(4.7%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	65.47%	70.86%	(5.39)
Operating Margin	5.92%	13.57%	(7.65)
Net Margin	(0.96%)	11.49%	(12.45)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

No balance sheet provided. (Boo!)

Learn the ways of the balance sheet.

Cash Flow Highlights

No cash flow statement included. (Hiss!)

Find out why Fools always follow the money.

Related Companies:

• Time Warner (NYSE: TWX  )
• Yahoo! (Nasdaq: YHOO  )

Related Foolishness:

• EarthLink, a World of Wonder
• LivePerson Continues to Chatter
• Payback at AOL

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.