Phoenix New Media
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Phoenix New Media beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Phoenix New Media reported revenue of $45.9 million. The two analysts polled by S&P Capital IQ wanted to see a top line of $43.5 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $42.4 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 $0.03. The two earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. GAAP EPS of $0.02 for Q3 were 82% lower than the prior-year quarter's $0.11 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 39.3%, 460 basis points worse than the prior-year quarter. Operating margin was 1.3%, 1,510 basis points worse than the prior-year quarter. Net margin was 4.0%, 1,700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.7 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $175.7 million. The average EPS estimate is $0.25.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with six members out of 15 rating the stock outperform, and nine members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), one give Phoenix New Media a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Phoenix New Media is outperform, with an average price target of $5.28.
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