On May 1, after the market close, digital map database and software firm Navteq
- Net sales grew 31% as the company "closed on our acquisition of Traffic.com, secured new business with a number of in-dash and portable customers, and released our first Thailand map, which marked our 60th country of coverage."
- Margins improved across the board, contributing to an 82% jump in diluted earnings and strong free cash flow generation that more than doubled reported net income.
- Management is calling for full-year revenue of $720 million to $750 million and diluted earnings of $1.20 to $1.26, for a pricey forward P/E of 31.
- Navteq carries the highest rating, five stars, in Motley Fool's CAPS community. Customers Garmin
(NASDAQ:GRMN) , Honda(NYSE:HMC) and Toyota(NYSE:TM) also have five stars, while the "Big 3" auto firms of Daimler Chrysler(NYSE:DCX) , Ford(NYSE:F) , and General Motors(NYSE:GM) carry unfavorable one-star ratings.
(Figures in thousands, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$159,951 |
$122,325 |
30.8% |
|
Net Profit |
$30,249 |
$16,184 |
86.9% |
|
EPS |
$0.31 |
$0.17 |
82.4% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
53.58% |
48.62% |
4.96 |
|
Operating Margin |
26.34% |
18.85% |
7.49 |
|
Net Margin |
18.91% |
13.23% |
5.68 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$302,674 |
$199,611 |
51.6% |
|
Accounts Rec. |
$109,304 |
$82,999 |
31.7% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$18,898 |
$15,692 |
20.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$79,057 |
$14,411 |
448.6% |
|
Capital Expenditures |
$6,602 |
$2,188 |
201.7% |
|
Free Cash Flow |
$72,455 |
$12,223 |
492.8% |
Find out why free cash flow is a Fool's best friend.
Related Foolishness:
- Warren Buffett's Priceless Investment Advice
- Foolish Forecast: Key to Navteq's Earnings Map
- Navigating Navteq
- 70 Times Better Than the Next Microsoft
To learn more about why Navteq is a Stock Advisor pick, and see the newsletter's other market-beating recommendations, take a free 30-day trial. Microsoft is an Inside Value recommendation.
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.
Fool contributor Ryan Fuhrmann is long shares of Navteq but has no financial interest in any other company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned.
