The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ebix beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.
Gross margins grew, operating margins dropped, net margins dropped.
Ebix reported revenue of $53.8 million. The two analysts polled by S&P Capital IQ expected revenue of $50.9 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $42.6 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 $0.46. The two earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.46 for Q3 were 12% higher than the prior-year quarter's $0.41 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 82.3%, 270 basis points better than the prior-year quarter. Operating margin was 38.5%, 80 basis points worse than the prior-year quarter. Net margin was 33.6%, 520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $52.2 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $194.6 million. The average EPS estimate is $1.68.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,467 members out of 1,507 rating the stock outperform, and 40 members rating it underperform. Among 312 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 305 give Ebix a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ebix is buy, with an average price target of $27.50.
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