The 10-second takeaway
For the quarter ended Sep. 30 (Q3), HomeAway met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Gross margins shrank, operating margins dropped, net margins grew.
HomeAway reported revenue of $73.1 million. The 13 analysts polled by S&P Capital IQ wanted to see a top line of $73.3 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $61.1 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 $0.06. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were $0.06 for Q3 compared to -$0.05 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 84.6%, 160 basis points worse than the prior-year quarter. Operating margin was 14.3%, 280 basis points worse than the prior-year quarter. Net margin was 7.0%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $71.2 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $280.1 million. The average EPS estimate is $0.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 68 members out of 103 rating the stock outperform, and 35 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give HomeAway 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 HomeAway is outperform, with an average price target of $27.23.
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