The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NeuStar 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 expanded significantly.
Margins expanded across the board.
NeuStar reported revenue of $214.2 million. The 11 analysts polled by S&P Capital IQ expected to see sales of $214.3 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $174.2 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 $0.75. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.56 for Q4 were 124% higher than the prior-year quarter's $0.25 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 77.3%, 100 basis points better than the prior-year quarter. Operating margin was 32.4%, 760 basis points better than the prior-year quarter. Net margin was 17.6%, 690 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $218.6 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $908.7 million. The average EPS estimate is $3.23.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 253 members out of 267 rating the stock outperform, and 14 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give NeuStar a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NeuStar is outperform, with an average price target of $44.38.
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