Move Meets on the Top Line, Misses Where it Counts

Move (Nasdaq: MOVE  ) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Move met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.

Margins expanded across the board.

Revenue details
Move reported revenue of $49.4 million. The three analysts polled by S&P Capital IQ expected a top line of $49.1 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $46.5 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 $0.09. The three earnings estimates compiled by S&P Capital IQ forecast $0.10 per share. GAAP EPS of $0.04 for Q3 were 300% higher than the prior-year quarter's $0.01 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 79.3%, 70 basis points better than the prior-year quarter. Operating margin was 3.2%, 200 basis points better than the prior-year quarter. Net margin was 3.6%, 190 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $51.7 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $197.8 million. The average EPS estimate is $0.40.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 113 members out of 203 rating the stock outperform, and 90 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Move a green thumbs-up, and 41 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Move is buy, with an average price target of $12.33.

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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 has no positions in the stocks mentioned above. 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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