Rosetta Stone (NYSE: RST ) is expected to report Q3 earnings on Nov. 7. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Rosetta Stone's revenues will wane -5.0% and EPS will remain in the red.
The average estimate for revenue is $61.0 million. On the bottom line, the average EPS estimate is -$0.05.
Last quarter, Rosetta Stone booked revenue of $60.8 million. GAAP reported sales were 8.9% lower than the prior-year quarter's $66.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at -$0.15. GAAP EPS of -$0.22 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 81.4%, 130 basis points worse than the prior-year quarter. Operating margin was -8.3%, 10 basis points worse than the prior-year quarter. Net margin was -7.5%, 70 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $270.5 million. The average EPS estimate is -$0.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 678 members out of 767 rating the stock outperform, and 89 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Rosetta Stone a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rosetta Stone is hold, with an average price target of $12.33.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Rosetta Stone makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.