The 10-second takeaway
For the quarter ended June 30 (Q2), Constant Contact met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Constant Contact chalked up revenue of $62.1 million. The 17 analysts polled by S&P Capital IQ foresaw a top line of $61.9 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $52.5 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 $0.11. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS were -$0.02 for Q2 against $0.04 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 70.3%, 70 basis points worse than the prior-year quarter. Operating margin was 0.3%, 230 basis points worse than the prior-year quarter. Net margin was -0.7%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $64.0 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $253.5 million. The average EPS estimate is $0.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 74 members out of 93 rating the stock outperform, and 19 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Constant Contact a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Constant Contact is outperform, with an average price target of $26.47.
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