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Ebix Beats on Both Top and Bottom Lines

Ebix (Nasdaq: EBIX  ) reported earnings on Aug. 7. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Ebix. Motley Fool newsletter services recommend Ebix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 28, 2012, at 1:03 PM, elainemen wrote:

    In the past, I owned Ebix. It did well until it had

    questions about its financials. Then, its price

    fell dramatically. What happened with that


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