The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ancestry.com beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins grew, net margins expanded.
Ancestry.com recorded revenue of $128.4 million. The eight analysts polled by S&P Capital IQ expected a top line of $123.6 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $103.1 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 $0.54. The nine earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.54 for Q3 were 35% higher than the prior-year quarter's $0.40 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 82.0%, 170 basis points worse than the prior-year quarter. Operating margin was 28.0%, 170 basis points better than the prior-year quarter. Net margin was 19.4%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $124.6 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $475.9 million. The average EPS estimate is $2.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 348 members out of 385 rating the stock outperform, and 37 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Ancestry.com 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 Ancestry.com is outperform, with an average price target of $37.89.
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