The 10-second takeaway
For the quarter ended June 30 (Q2), Ebix beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted.
Gross margins increased, operating margins contracted, and net margins contracted.
Ebix reported revenue of $47.7 million. The two analysts polled by S&P Capital IQ expected net sales of $45.8 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $42.3 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 $0.47. The two earnings estimates compiled by S&P Capital IQ forecast $0.39 per share. GAAP EPS of $0.47 for Q2 were 11% lower than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.8%, 190 basis points better than the prior-year quarter. Operating margin was 37.1%, 240 basis points worse than the prior-year quarter. Net margin was 37.9%, 1,500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $49.4 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $189.3 million. The average EPS estimate is $1.58.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,479 members out of 1,520 rating the stock outperform, and 41 members rating it underperform. Among 340 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 329 give Ebix a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ebix is buy, with an average price target of $26.50.
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