Demand Media (NYSE: DMD ) reported earnings on Aug. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Demand Media beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded to zero.
Gross margins were steady, operating margins grew, and net margins improved.
Demand Media reported revenue of $93.1 million. The six analysts polled by S&P Capital IQ foresaw a top line of $89.0 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $79.5 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 $0.09. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.07 per share. GAAP EPS shrank to zero from the prior-year quarter's -$0.03.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.3%, about the same as the prior-year quarter. Operating margin was 1.0%, 190 basis points better than the prior-year quarter. Net margin was 0.1%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $92.6 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $364.5 million. The average EPS estimate is $0.36.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 37 members out of 75 rating the stock outperform, and 38 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Demand Media a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Demand Media is outperform, with an average price target of $10.65.
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