Advisory Board (Nasdaq: ABCO) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Advisory Board beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.

Margins improved across the board.

Revenue details
Advisory Board reported revenue of $100.0 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $98.9 million. Sales were 33% higher than the prior-year quarter's $75.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.45. The four earnings estimates compiled by S&P Capital IQ forecast $0.56 per share on the same basis. GAAP EPS of $0.46 for Q3 were 92% higher than the prior-year quarter's $0.24 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.8%, 60 basis points better than the prior-year quarter. Operating margin was 12.7%, 520 basis points better than the prior-year quarter. Net margin was 8.0%, 280 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $100.4 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $372.3 million. The average EPS estimate is $1.99.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 35 members out of 69 rating the stock outperform, and 34 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Advisory Board a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advisory Board is outperform, with an average price target of $71.33.

Over the decades, small-cap stocks, like Advisory Board have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.